Attorney General Bob Ferguson, in conjunction with over 40 other AGs, announced a lawsuit Sunday against dozens of drug manufacturers alleging that the companies secretly conspired to increase the cost of generic medications.
The medications include everyday antibiotics, antidepressants and contraceptives. A press release from Ferguson's office states that these overcharges likely affected millions of Washington residents.
The release also referred to the incident as "one of the most egregious and damaging price-fixing schemes in United States history" and asserted that the companies raised prices on some drugs by over 1,000 percent during the height of the conspiracy. Teva Pharmaceuticals, the largest generic drug manufacturer in the world, is named in the lawsuit in addition to 20 other companies.
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According to the lawsuit, the companies created an "anticompetitive culture" and met often to agree to raise the price of generic drugs, violating state and federal antitrust laws and the Washington State Consumer Protection Act.
“These pharmaceutical manufacturers conspired to raise prices of generic prescription drugs, driving up health care costs and making it harder for millions of Washingtonians to access affordable care,” Ferguson said. “Our friends and neighbors cannot afford to pay inflated drug prices to increase the profits of pharmaceutical companies. This is one of the most damaging price-fixing conspiracies in history – we’re going to hold those responsible accountable.”
The prices of hundreds of drugs skyrocketed in 2013 and 2014, some with increases of more than 50 percent, according to the lawsuit. The lawsuit states that privately the companies created "anti-competitive price-fixing agreements" through dinners, social outings, emails and text messages. In these communications, the companies agreed to drive up the cost of more than 100 common drugs used to treat a variety of conditions, including diabetes, cancer, HIV, high blood pressure and high cholesterol, the lawsuit states
The lawsuit seeks the maximum civil penalties allowed under law and court action to restore competition to the generic drug market.
Cox Media Group
