A generic drug price fixing MDL has been filed alleging drug companies participated in a scheme to raise the consumer price of generic drugs to restrain competition.
Plaintiff Fraternal Order of Police, Miami Lodge 20, Insurance Trust Fund has filed the generic drug price fixing MDL (Multi-District Legislation) lawsuit against defendants Actavis Holdco U.S., Inc., Lannett Company, Inc., and Epic Pharma, LLC.
Actavis, Lannett and Epic stand accused of conspiring to “fix, raise, maintain and stabilize the prices of generic Ursodiol capsules in the United States during the period of May 9, 2014 through the present or the date on which the anti-competitive effects subside (the ‘Class Period’)” in certain states.
Ursodiol is a generic drug used to treat gallstones. It is made of ursodeoxycholic acid. According to FiercePharma, the drug cost as little as 45 cents per capsule a few years ago. Defendant Lannett increased its price to $5.10 per capsule in 2014. Other companies bumped up the prices of their generic versions of the drug as well, which meant the competition nearly matched the 1,000 percent price hike.
Generic Drug Price Fixing MDL Discusses Government Investigation
The Department of Justice has been investigating possible violations of anti-trust laws because of price fixing among generic drug companies.
According to the generic drug price fixing MDL, “The structure of the generic drug market allows generic drug manufacturers, including defendants, to frequently interact and directly communicate with each other.”
The Department of Justice allegedly is examining interaction within trade associations as one way different generic manufacturers’ sales staff were able to collude with each other.
“The prices for over a thousand generic pharmaceuticals skyrocketed between 2013 and 2014,” says the generic drug price fixing MDL. Prices of more than 1,200 generic drugs increased an average of 448 percent during that year’s span according to one report.
Also during that time period, Actavis, Lannett and Epic representatives allegedly met at various industry trade shows. According to the generic drug price fixing MDL, “the prices of Ursodiol skyrocketed in lockstep after those meetings.”
A look at the market found no justifications for the sudden price increases, the plaintiffs say. There was no shortage related to ursodeoxycholic acid, no new formulations and no labeling changes. No other countries demonstrated similar price increases during that time.
The generic drug price fixing MDL says that Ursodiol is susceptible to “collusion and other anti-competitive conduct” because “only a handful of competitors” make the drug. New competition is unlikely because of “regulatory, intellectual property, and financial hurdles” that a new Ursodiol maker would have to face.
If you reside in District of Columbia, Hawaii, Massachusetts, Missouri, Montana, Rhode Island and Vermont and believe you have been the victim of such pricing ploys, you could qualify for free participation in an ongoing generic drug price fixing class action investigation.
The Generic Drug Price Fixing MDL is Case No. 2:17-cv-02492 in the U.S. District Court for the Eastern District of Pennsylvania.
Join a Free Generic Prescription Drugs Price-Fixing Class Action Lawsuit Investigation
If you live in the District of Columbia, Hawaii, Massachusetts, Missouri, Montana, Rhode Island or Vermont and purchased prescription generic drugs, you may qualify to participate in this price-fixing class action lawsuit investigation.
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