Suffolk County Executive Steve Bellone announced that Suffolk County has filed a federal lawsuit alleging that 46 major generic drug manufacturers colluded in a massive antitrust conspiracy impacting residents, employees and retirees of the County of Suffolk who purchased certain generic medications from 2009 to present. There are over 46 drug companies who restrained trade, artificially inflated and manipulated prices and reduced competition for 130 critical generic medications that Suffolk County paid a significant increase for as a result of the criminal antitrust conspiracy. These generic drugs include medications that preserve health and save lives, including, but not limited to those that treat high blood pressure, bacterial infections, pneumonia, multiple sclerosis, glaucoma, epilepsy, rheumatoid arthritis and diabetes, as well as medications used as part of cancer treatments including brain cancer.
Generic drugs are critical to the U.S. healthcare system, with nine out of ten prescriptions filled in the U.S. being filled for generic drugs. Generic drugs have the ability to save consumers, taxpayers and other government entities that pay for generic drugs (such as the County) tens of billions of dollars annually, since they are less expensive than their brand name equivalents.
“Generic drugs were made available to provide patients a must cheaper alternative to named-brand medication, not for drug companies to use them as a way to bilk the taxpayers,” stated Suffolk County Executive Bellone. “These co-conspirators have hurt seniors, veterans, people with disabilities, and even parents struggling to pay for medication for their sick child. Suffolk County will not tolerate this type of egregious behavior and we will those accountable for engaging in this scheme to defraud the public.”
Their egregious actions against the public health included entering into illegal agreements to allocate shares of the market for specific generic drugs to certain manufacturers, to raise prices for generic drugs at the same time and to the same level and to refrain from entering the market or bidding for customers in relation to certain generic drugs. The County’s lawsuit details the manner in which generic drug manufacturers created, implemented and participated in the antitrust conspiracy, including utilizing a pattern of communication specifically intended to prevent detection of their collusion and illegal activity.
Suffolk County pays pharmaceutical benefits for the over 8,700 employees with a total of 45,000 covered employees, retirees and dependents. Suffolk County also pays pharmaceutical benefits for inmates of County jails and Medicaid beneficiaries who reside in this county of over 1.5 million residents. Today’s lawsuit alleges that as a result of the defendants’ illegal antitrust conspiracy, the County spent an extraordinarily higher amount for generic drugs than it would have in a truly competitive market. Suffolk County alleges that the defendants’ conduct violated federal and state antitrust laws and is asking the court for substantial money damages and an order preventing the defendants from continuing their illegal anti-competitive conduct.
The lawsuit, which was filed in the Eastern District of New York, follows an investigation led by the Connecticut State Attorney General and joined by other states including the New York’s Attorney General. The defendant drug companies are also under investigation by the U.S. Department of Justice which, thus far, has resulted in charges against four culpable companies and four executives. The four companies have agreed to pay over $220 million in criminal penalties, have entered into deferred prosecution agreements and are cooperating in the ongoing investigation
Defendants include affiliates and subsidiaries if Actavis Holdco US, Inc.; Actavis Elizabeth LLC; Actavis Pharma, Inc.; Amneal Pharmaceuticals, Inc.; Amneal Pharmaceuticals LLC; Apotex Corp.; Ascend Laboratories, LLC; Aurobindo Pharma USA, Inc.; Barr Pharmaceuticals, LLC; Bausch Health Americas, Inc.; Bausch Health US, LLC; Breckenridge Pharmaceutical, Inc.; Citron Pharma LLC; Dava Pharmaceuticals, LLC; Dr Reddy’s Laboratories, Inc.; Endo International Plc; Fougera Pharmaceuticals Inc.; Generics Bidco I, LLC; Glenmark Pharmaceuticals, Inc.; Greenstone LLC; G&W Laboratories, Inc.; Heritage Pharmaceuticals, Inc.; Lannett Company, Inc.; Lupin Pharmaceuticals, Inc.; Mayne Pharma USA Inc; Mallinckrodt Inc.; Mallinckrodt LLC; Mallinckrodt Plc; Mutual Pharmaceutical Company, Inc.; Mylan Inc.; Mylan Pharmaceuticals, Inc.; Par Pharmaceutical, Inc.; Perrigo New York, Inc.; Pfizer, Inc.; Rising Pharma Holdings, Inc; Rising Pharmaceuticals, Inc.; Sandoz, Inc.; Pliva, Inc.; Sun Pharmaceutical Industries, Inc.; Taro Pharmaceuticals USA, Inc.; Teligent, Inc; Teva Pharmaceuticals USA, Inc.; Upsher-Smith Laboratories, LLC; West-Ward Pharmaceuticals Corp.; Wockhardt USA LLC; Zydus Pharma-Ceuticals (USA), Inc.
