COLUMBUS, Ohio – Ohio Attorney General Dave Yost has announced a $49.1 million settlement with two pharmaceutical manufacturers accused of participating in a price-fixing scheme that drove up costs for generic prescription drugs.
The settlement involves Apotex of Toronto and Heritage Pharmaceuticals of Eatontown, New Jersey, both of which were accused of colluding to manipulate markets, inflate drug prices, and limit competition. Under the agreement, Heritage Pharmaceuticals will pay $10 million, while Apotex will contribute $39.1 million toward the total settlement.
“This was a conspiracy to cheat the system – we won’t tolerate collusion that inflates drug prices and harms Ohioans who rely on affordable medication,” Yost said. “We are working to restore fair competition and hold wrongdoers accountable.”
Consumers May Be Eligible for Compensation
Individuals who purchased certain generic prescription drugs between May 2009 and December 2019 may qualify for compensation under the settlement. Consumers can check their eligibility by visiting www.AGGenericDrugs.com, calling 1-866-290-0182 (toll-free), or emailing [email protected].
A Nationwide Crackdown on Price-Fixing
The settlement stems from a broader legal effort against price-fixing in the generic drug industry. Attorney General Yost joined nearly all U.S. states and territories in filing three major antitrust lawsuits against 30 corporate defendants and 25 individual executives.
- The first complaint (2016) included Heritage Pharmaceuticals, Apotex, and 16 other corporate defendants, alleging collusion on the pricing of 15 generic drugs.
- The second complaint (2019) targeted Teva Pharmaceuticals, Apotex, and 18 other major generic drug manufacturers, naming 16 senior executives.
- The third complaint (2020) focused on 80 topical generic drugs, amounting to billions of dollars in U.S. sales. It named 26 corporate defendants and 10 executives, six of whom have since settled and are cooperating.
Uncovering a Secret Network
The investigation revealed a web of industry executives who conspired at private dinners, social gatherings, and secret phone calls to fix prices. They used coded language such as “fair share,” “playing nice in the sandbox,” and “responsible competitor” to disguise illegal agreements.
Key evidence includes a two-volume notebook kept by a cooperating witness, detailing years of secret discussions with competitors. Authorities also analyzed more than 20 million documents and phone records linking over 600 sales and pricing executives to the scheme.
A Victory for Consumers
The settlement marks a significant step in the fight against corporate price-fixing, reinforcing Ohio’s commitment to consumer protection. Yost emphasized that his office will continue working to hold pharmaceutical companies accountable and ensure Ohioans are not exploited by unfair pricing schemes.
For more updates on this case and consumer rights information, visit www.AGGenericDrugs.com.
