BOSTON — A coalition of 48 states and territories, including Massachusetts, has reached settlements totaling $17.85 million with pharmaceutical companies Lannett Company, Inc. and Bausch Health US, LLC and Bausch Health Americas, Inc. The settlements resolve allegations of a long-running conspiracy to artificially inflate and manipulate prices for numerous generic prescription drugs.
Price Manipulation Allegations
The agreements stem from accusations that Lannett and Bausch engaged in practices designed to reduce competition and restrain trade. As a result of the settlements, Massachusetts will receive $203,410, and restitution may be available to eligible consumers within the state.
Both Lannett and Bausch have agreed to internal reforms to ensure fair competition and compliance with antitrust laws. They will also cooperate with ongoing multistate litigation involving dozens of corporate defendants and individual executives.
Who May Be Eligible for Restitution?
Consumers who purchased generic prescription drugs – including certain anti-depressants, blood pressure stabilizers, and diabetes medication – manufactured by either Lannett or Bausch between May 2009 and December 2019 may be eligible for compensation. Individuals can determine their eligibility by calling 1-866-290-0182, emailing [email protected], or visiting www.AGGenericDrugs.com.
New Lawsuit Filed
Massachusetts Attorney General Andrea Joy Campbell has also joined a coalition of 42 states and territories in filing a lawsuit against Novartis and its generic subsidiary Sandoz. The lawsuit alleges a systemic effort to conspire with other generic manufacturers to fix prices, allocate markets, and rig bids for 31 different generic drugs. The complaint also alleges fraudulent asset transfers intended to shield Novartis from liability.
This action is part of a broader effort, beginning in 2017, where Massachusetts and nearly all other states and territories have filed three antitrust complaints related to similar allegations of price inflation and limited competition. Previous complaints involved Heritage, Teva Pharmaceuticals, and 80 topical generic drugs.
Frequently Asked Questions
What is the purpose of these settlements?
The settlements resolve allegations that Lannett and Bausch engaged in conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs.
What drugs are involved in these settlements?
The settlements relate to numerous generic prescription drugs, including certain anti-depressants, blood pressure stabilizers, and diabetes medication manufactured by Lannett and Bausch between May 2009 and December 2019.
What is the status of the lawsuit against Novartis and Sandoz?
A coalition of 42 states and territories, including Massachusetts, has filed a lawsuit against Novartis and Sandoz alleging a systemic campaign to conspire with other generic manufacturers to fix prices, allocate markets, and rig bids for 31 different generic drugs.
As these cases move forward, it remains to be seen whether further settlements will be reached or if the cases will proceed to trial. It is also possible that additional pharmaceutical companies could become targets of similar investigations.
