Colorado Joins 44 States in Lawsuit Against Generic Drug Manufacturers for Price Fixing.
A complaint filed against 20 generic drug manufacturers alleges that some of the country’s largest pharmaceutical companies, which include Teva Pharmaceutical, Sandoz, Mylan, and Pfizer, violated state and federal laws in a price-fixing conspiracy that significantly increased the prices of generic drugs.
The complaint states that the generic drug makers conspired with each other to fix prices and divide market share for more than 100 different generic drugs. The lawsuit also alleges that their collusion was synchronized to cover up their agreement and limit the competition between them.
The conduct of these pharmaceutical giants has resulted in billions of dollars of overcharges and has had a significant negative impact on consumers. Some of these consumers were those who went without their medication due to the fact that they could not afford the inflated cost of their prescription drugs. Between 2013 and 2014, evidence indicates that these companies raised prices on over 100 generic drugs and the prices of some drugs were increased by more than 1,000 percent.
The lawsuit, which stated that the defendant organizations “embarked on one of the most egregious and damaging price-fixing conspiracies in the history of the United States,” is seeking damages, civil penalties and actions by the court to restore competition to the generic drug market.
To watch the recent 60-Minutes episode on Pricing Fixing, please click here.