Georgia Secures $49.1 Million in Settlements with Heritage Pharmaceuticals and Apotex for Price Manipulation of Generic Drugs
Attorney General Chris Carr announced on November 1st that Georgia has joined a coalition of 50 states and territories in reaching significant cooperation agreements and settlements with Heritage Pharmaceuticals and Apotex, totaling $49.1 million. These settlements resolve allegations that both companies engaged in long-running conspiracies to artificially inflate prices, reduce competition, and unreasonably restrain trade concerning various generic prescription drugs.
The settlement with Apotex includes a $17.6 million restitution fund for consumers, while the Heritage agreement features a $3.8 million restitution fund. Consumers who purchased a generic prescription drug manufactured by either company between 2010 and 2018 may be eligible for compensation. To check eligibility, individuals can call 1-866-290-0182 (Toll-Free), email info@AGGenericDrugs.com, or visit www.AGGenericDrugs.com.
“Drug prices are a major concern for all Georgians, particularly our older adults, and consumers should know that the marketplace is fair and not fixed,” Carr stated. “We won’t stand by and allow any company to artificially increase costs on the backs of hardworking Georgians desperately in need of treatment and care.”
As part of the settlement agreements, both companies have committed to cooperating in ongoing multistate litigation against 30 corporate defendants and 25 individual executives. They have also agreed to implement a series of internal reforms to promote fair competition and ensure compliance with antitrust laws.
The coalition of states and territories has filed three antitrust complaints since 2016. The first complaint involved Heritage and 17 other corporate defendants, as well as two individual defendants and 15 generic drugs. Two former executives from Heritage Pharmaceuticals, Jeffery Glazer and Jason Malek, have since cooperated and entered settlement agreements. The second complaint, filed in 2019, targeted 20 of the nation’s largest generic drug manufacturers and named 16 individual senior executive defendants. The third complaint, set to be tried first, focuses on 80 topical generic drugs representing billions of dollars in U.S. sales, involving 26 corporate defendants and 10 individual defendants.
These cases originated from a series of investigations supported by evidence from multiple cooperating witnesses, a document database of over 20 million files, and a phone records database containing millions of details and contact information for over 600 individuals in the generics industry. The complaints detail an interconnected network of industry executives who communicated through various informal gatherings, leading to unlawful agreements that discouraged competition and raised prices. The records obtained include notes from one cooperator that document discussions with competitors and internal meetings over several years.
Joining Carr in this settlement are attorneys general from multiple states, including Alaska, California, Florida, Illinois, New York, and Washington, among others.