Montana Attorney General Tim Fox and 43 other states/territories have filed a lawsuit against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers, alleging a broad conspiracy to artificially inflate and manipulate prices, reduce competition and unreasonably restrain trade for more than 100 different generic drugs.

 

The lawsuit also names 15 individual senior executive defendants at the heart of the conspiracy who were responsible for sales, marketing, pricing, and operations. The drugs at issue account for billions of dollars of sales in the U.S. The alleged schemes increased prices affecting the health insurance market, taxpayer-funded healthcare programs such as Medicare and Medicaid, and individuals who must pay artificially inflated prices for their prescription drugs.

 

“Montanans have been hit hard by the often shockingly high prices of prescription drugs. The evidence in this case shows that some of the most well-known generic drug manufactures were involved in a widespread conspiracy to fix prices and divide up market share, with the direct result of harming consumers in need of life-sustaining medicine,” Attorney General Fox said. “The fact that generic drugs are supposed to be more affordable makes this conduct all the more troubling and harmful. We are committed to prosecuting and investigating this collusive conduct until these companies are held accountable for the harm they have caused.”

 

The complaint alleges that 20 generic drug manufacturers engaged in a broad, coordinated, and systematic campaign to conspire with each other to fix prices, allocate markets and rig bids for more than 100 different generic drugs. The drugs span all types and classes, including tablets, capsules, suspensions, creams, gels, ointments, statins, ace inhibitors, beta blockers, antibiotics, anti-depressants, contraceptives, and non-steroidal anti-inflammatories. They treat a range of diseases and conditions from basic infections to diabetes, cancer, epilepsy, multiple sclerosis, HIV, ADHD, and more. In some instances, the coordinated price increases were over 1,000 percent.

 

The complaint shows an interconnected web of industry executives. These competitors met with each other during industry dinners, “girls nights out,” lunches, cocktail parties, and golf outings. They communicated via frequent telephone calls, emails and text messages that sowed the seeds for their illegal agreements. Throughout the complaint, defendants use terms such as “fair share,” “playing nice in the sandbox,” and “responsible competitor” to describe how they unlawfully discouraged competition, raised prices, and enforced an ingrained culture of collusion.

 

The lawsuit seeks damages, civil penalties, and actions by the court to restore competition to the generic drug market.

 

View or download the lawsuit here: https://dojmt.gov/wp-content/uploads/GDMS-Complaint-5.10.19.pdf

 

Corporate defendants:

Teva Pharmaceuticals USA, Inc.

Sandoz, Inc.

Mylan Pharmaceuticals Inc.

Actavis Holdco US, Inc.

Actavis Pharma, Inc.

Amneal Pharmaceuticals, Inc.

Apotex Corp.

Aurobindo Pharma U.S.A., Inc.

Breckenridge Pharmaceutical, Inc.

Dr. Reddy’s Laboratories, Inc.

Glenmark Pharmaceuticals Inc. USA

Greenstone LLC

Lannett Company, Inc.

Lupin Pharmaceuticals, Inc.

Par Pharmaceutical Companies, Inc.

Pfizer, Inc.

Taro Pharmaceuticals USA, Inc.

Upsher-Smith Laboratories, LLC

Wockhardt USA, LLC

Zydus Pharmaceuticals (USA), Inc.

 

Individual defendants:

• Ara Aprahamian, Vice President of Sales and Marketing at Taro Pharmaceuticals U.S.A, Inc.
• David Berthold, Vice President of Sales at Lupin Pharmaceuticals, Inc.
• James Brown, Vice President of Sales at Glenmark Pharmaceuticals, Inc.
• Maureen Cavanaugh, former Senior Vice President and Chief Commercial Officer, North America, for Teva
• Marc Falkin, former Vice President, Marketing, Pricing and Contracts at Actavis
• James Grauso, former Senior Vice President, Commercial Operations for Aurobindo from December 2011 through January 2014. Since February 2014, Grauso has been employed as the Executive Vice President, N.A. Commercial Operations at Glenmark
• Kevin Green, former Director of National Accounts at Teva from January 2006 through October 2013. Since November 2013, Green has worked at Zydus Pharmaceuticals (USA) Inc. as the Vice President of Sales
• Armando Kellum, former Vice President, Contracting and Business Analytics at Sandoz
• Jill Nailor, Senior Director of Sales and National Accounts at Greenstone
• James Nesta, Vice President of Sales at Mylan
• Kon Ostaficiuk, the President of Camber Pharmaceuticals, Inc.
• Nisha Patel, former Director of Strategic Customer Marketing and later, Director of National Accounts at Teva.
• David Rekenthaler, former Vice President, Sales US Generics at Teva
• Richard Rogerson, former Executive Director of Pricing and Business Analytics at Actavis
• Tracy Sullivan DiValerio, Director of National Accounts at Lannett

 

Drugs listed in the complaint as subject to price-fixing and market allocation agreements:

Adapalene Gel

Amiloride HCL/HCTZ Tablets

Amoxicillin/Clavulanate Chewable Tablets

Amphetamine/Dextroamphetamine ER (aka Mixed Amphetamine Salts)

Amphetamine/Dextroamphetamine IR

Azithromycin Oral Suspension

Azithromycin Suspension

Baclofen Tablets

Benazepril HCTZ

Bethanechol Chloride Tablets

Budesonide DR Capsules

Budesonide Inhalation

Bumetanide Tablets

Buspirone Hydrochloride Tablets

Cabergoline

Capecitabine

Carbamazepine Chewable Tablets

Carbamazepine Tablets

Cefdinir Capsules

Cefdinir Oral Suspension

Cefprozil Tablets

Celecoxib

Cephalexin Suspension

Cimetidine Tablets

Ciprofloxacin Tablets

Clarithromycin ER Tablets

Clemastine Fumarate Tablets

Clomipramine HCL

Clonidine TTS Patch

Clotrimazole Topical Solution

Cyproheptadine HCL Tablets

Desmopressin Acetate Tablets

Desogestrel/Ethinyl Estradiol Tablets (Kariva)

Dexmethylphenidate

Dextroamphetamine Sulfate ER

Diclofenac Potassium Tablets

Dicloxacillin Sodium Capsules

Diflunisal Tablets

Diltiazem HCL Tablets

Disopyramide Phosphate Capsules

Doxazosin Mesylate Tablets

Drospirenone and ethinyl estradiol (Ocella)

Enalapril Maleate Tablets

Entecavir

Epitol Tablets

Estazolam Tablets

Estradiol Tablets

Ethinyl estradiol and levonorgestrel (Portia and Jolessa)

Ethosuximide Capsules

Ethosuximide Oral Solution

Etodolac ER Tablets

Etodolac Tablets

Fenofibrate

Fluconazole Tablets

Fluocinonide Cream

Fluocinonide Emolient Cream

Fluocinonide Gel

Fluocinonide Ointment

Fluoxetine HCL Tablets

Flurbiprofen Tablets

Flutamide Capsules

Fluvastatin Sodium Capsules

Gabapentin Tablets

Glimepiride Tablets

Griseofulvin Suspension

Haloperidol

Hydroxyurea Capsules

Hydroxyzine Pamoate Capsules

Irbesartan

Isoniazid

Ketoconazole Cream

Ketoconazole Tablets

Ketoprofen Capsules

Ketorolac Tromethamine Tablets

Labetalol HCL Tablets

Lamivudine/Zidovudine (generic Combivir)

Levothyroxine

Loperamide HCL Capsules

Medroxyprogesterone Tablets

Methotrexate Tablets

Mimvey (Estradiol/Noreth) Tablets

Moexipril HCL Tablets

Moexipril HCL/HCTZ Tablets

Nabumetone Tablets

Nadolol Tablets

Niacin ER Tablets

Nitrofurantoin MAC Capsules

Norethindrone/ethinyl estradiol (Balziva)

Northindrone Acetate

Nortriptylline Hydrochloride Capsules

Omega-3-Acid Ethyl Esters

Oxaprozin Tablets

Oxybutynin Chloride Tablets

Paricalcitol

Penicillin VK Tablets

Pentoxifylline Tablets

Piroxicam

Pravastatin Sodium Tablets

Prazosin HCL Capsules

Prochlorperazine Tablets

Propranolol HCL Tablets

Raloxifine HCL Tablets

Ranitidine HCL Tablets

Tamoxifen Citrate Tablets

Temozolomide

Tizanidine

Tobramycin

Tolmetin Sodium Capsules

Tolterodine ER

Tolterodine Tartrate

Topiramate Sprinkle Capsules

Trifluoperazine HCL

Valsartan HCTZ

Warfarin Sodium Tablets