New Yorkers Prescribed Generic Drugs Could Be Entitled To Share Of $96M Settlement: AG

HUDSON VALLEY, NY — After a multimillion dollar settlement New York Attorney General Letitia James is urging eligible consumers to submit claims for compensation from generic drug manufacturers colluded to raise prices.

The U.S. District Court for the District of Connecticut recently gave preliminarily approval to plans to distribute tens of millions of dollars to consumers who overpaid for certain generic drugs as the result of a massive, long-running price fixing scheme to inflate drug prices while reducing competition in the pharmaceutical industry.

An investigation by the New York AG and a coalition of other states, found that dozens of pharmaceutical companies illegally colluded behind the scenes to increase prices for a range of generic drugs used by millions of New Yorkers.

"For years, dozens of pharmaceutical companies cheated New Yorkers with shady backroom deals that raised prices," James said in an announcement on Tuesday. "These companies inflated generic drug prices and forced hard-working families to pay excessive amounts for essential medications. I encourage all New Yorkers who purchased eligible generic drugs to submit a claim to receive compensation."

Eligible consumers must submit their claim by March 8, 2027 to receive compensation. To submit a claim for payment, consumers can visit AGGenericDrugs.com and follow the directions to fill out and submit a claim online. Consumers can also request a form from the claims administrator directly by emailing info@aggenericdrugs.com, calling 1-866-290-0182, or mailing the address listed on the webpage.

The settlements are the result of three lawsuits filed by the coalition against dozens of generic pharmaceutical companies and individuals alleging years of conduct impacting the prices of over 100 drugs. The first complaint was filed in 2016 against 18 corporate defendants and two individual defendants and concerned 15 generic drugs. The second complaint was filed in 2019 against 22 of the nation’s largest generic drug manufacturers and 16 individual senior executive defendants. The third complaint was filed in 2020 and focused on 80 topical generic drugs that account for billions of dollars of sales in the United States and names 26 corporate defendants and 10 individual defendants.

Seven pharmaceutical executives have been cooperating to support the coalition’s claims in these cases, according to the AG.

The lawsuits allege these companies engaged in a broad, coordinated, and systematic conspiracy to fix prices, avoid competition, and rig bids for more than 100 different generic drugs. The companies maintained an interconnected web of industry executives where these competitors met with each other during industry dinners, “girls’ nights out,” lunches, cocktail parties, and golf outings, and communicated via telephone calls, emails, and text messages that sowed the seeds for their illegal agreements.

The pharmaceutical executives used terms like “fair share,” “playing nice in the sandbox,” and “responsible competitor” to describe how they unlawfully discouraged competition, raised prices, and enforced an ingrained culture of collusion, investigators found.

The drugs included in the scheme span all types – including tablets, capsules, creams, and ointments – and classes – including antibiotics, anti-depressants, contraceptives, and non-steroidal anti-inflammatory drugs. They treat a range of diseases and conditions from basic infections to diabetes, cancer, epilepsy, multiple sclerosis, HIV, ADHD, and more. In some instances, the coordinated price increases were over 1,000 percent. For example, Digoxin, an essential heart medication manufactured by Heritage, tripled in price, causing patients to pay hundreds of dollars more for the drug.

Attorney General James and the coalition have secured $96 million from Apotex and Heritage, Bausch and Lannett, and Glenmark Pharmaceuticals USA, Inc. As part of the settlements, the defendants have agreed to cooperate in the ongoing multistate cases against the remaining corporate defendants and individual executives, as well as to make reforms to prevent future misconduct and ensure fair competition and compliance with antitrust laws.