New York Attorney General Letitia James is urging residents to check their eligibility for compensation from a $39.1 million settlement with generic drug manufacturer Apotex Corp. The settlement, secured by James and a coalition of 49 other attorneys general, addresses allegations that Apotex participated in a scheme to inflate prescription drug prices and restrict competition.
The settlement is part of an ongoing multistate investigation into widespread price-fixing in the generic drug industry. Companies involved in the scheme allegedly conspired to raise prices on more than 100 medications, including those used to treat diabetes, heart conditions, cancer, and ADHD. Some drug prices increased by over 1,000 percent.
“When companies collude behind closed doors to raise prescription drug prices, they put everyday New Yorkers at serious risk,” James said. “The companies involved in this scheme inflated prices of vital medications… and now we are holding them accountable.”
New Yorkers who purchased certain generic drugs between May 2009 and December 2019 may be eligible for compensation. Consumers can check eligibility by calling 1-866-290-0182, emailing info@AGGenericDrugs.com, or visiting www.AGGenericDrugs.com.
The lawsuits, filed by the attorneys general, allege that generic drug manufacturers coordinated illegal agreements through secret meetings, industry events, and private communications. Executives reportedly used phrases like “fair share” and “playing nice in the sandbox” to enforce price-fixing arrangements. The investigation has led to settlements with multiple executives and companies, with several defendants cooperating in ongoing litigation.
As part of the settlement, Apotex and another company, Heritage Pharmaceuticals, have agreed to cooperate with future lawsuits against 30 corporate defendants and 25 individual executives. They have also committed to internal reforms and injunctive relief to prevent future anticompetitive behavior.
This case is the latest in a series of antitrust actions by James, who has taken on companies accused of monopolization, anti-competitive mergers, and unfair business practices. In recent months, her office has won cases against ski resort owner Intermountain and the NCAA, as well as secured settlements in the building services and live music industries.
The settlement with Apotex has been officially filed in the U.S. District Court for the District of Connecticut.
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