V.I. Attorney General Gordon C. Rhea on Thursday announced updates in a major multistate litigation against generic drug manufacturers.
The Virgin Islands, part of a coalition of 50 states and territories, has reached two settlements totaling $49.1 million with Heritage Pharmaceuticals and Apotex, resolving claims that these companies engaged in widespread conspiracies to manipulate prices and limit competition in the generic drug market.
These settlements, filed with the United States District Court for the District of Connecticut, are part of a broader antitrust effort led by the state of Connecticut against 30 corporate defendants and 25 individual executives. Heritage Pharmaceuticals agreed to a $10 million settlement, while Apotex’s $39.1 million settlement is pending completion of required signatures from all participating states and territories. Both companies have pledged to cooperate with ongoing litigation and adopt internal reforms to ensure compliance with antitrust laws.
“This marks a significant step toward accountability and fair competition in the pharmaceutical industry,” said Mr. Rhea. He spoke of the coalition’s commitment to tackling price manipulation, adding that “we are not only resolving past wrongs but also ensuring that these companies implement necessary reforms.”
According to the release, the ongoing litigation began in 2016 with a series of antitrust complaints led by Assistant Attorney General Joseph Nielsen of Connecticut. The first complaint involved Heritage Pharmaceuticals and named 17 other corporate defendants and 15 generic drugs. Since then, additional complaints have implicated Teva Pharmaceuticals and 19 other leading manufacturers. The litigation also addresses a wide network of interactions among executives, revealing evidence of coordinated price manipulation through various social and professional interactions such as industry dinners and golf outings.
The lawsuits are supported by extensive documentation, including over 20 million records and a detailed phone database tracking communications among industry executives. The cases expose practices where executives used terms like “fair share” and “responsible competitor” to describe collusive behavior aimed at reducing competition and inflating prices. Among the evidence is a two-volume notebook documenting one cooperator’s discussions with competitors over several years.
As part of the litigation, additional executives have entered into settlement agreements, offering cooperation to support the states’ cases. The coalition, which includes U.S. territories such as Virgin Islands, Puerto Rico and the Northern Mariana Islands, is set to proceed with the first trial in Hartford, Connecticut.
Virgin Islanders who purchased generic drugs manufactured by Heritage or Apotex between 2010 and 2018 may be eligible for compensation. Individuals seeking more information can visit AGGenericDrugs.com or contact the support hotline at 1-866-290-0182.
