District of Columbia Attorney General Brian L. Schwalb is urging residents to check whether they’re entitled to compensation as part of a proposed $39.1 million multistate settlement with generic drugmaker Apotex Corp. over alleged illegal price-fixing.
“For years, Apotex engaged in anticompetitive and illegal conduct, conspiring with other generic drug companies to inflate the costs of numerous prescription drugs,” Schwalb said. “Too many District residents pay too much for the medicines they need, and alongside a bipartisan coalition of AGs from nearly all states and territories, I’m working to make sure that every exploited patient gets their money back.”
The District joins 50 other states and territories in filing the settlement for preliminary approval Wednesday in U.S. District Court in Hartford, Connecticut. The court filing comes after all necessary signatories finalized their agreements with Apotex. The coalition is seeking court approval for the settlement terms, including injunctive relief to prevent future misconduct and a framework for distributing funds to impacted consumers.
Consumers who purchased certain generic prescription drugs between May 2009 and December 2019 may be eligible for restitution. District residents can determine eligibility by calling toll-free at 1-866-290-0182, emailing info@AGGenericDrugs.com, or visiting AGGenericDrugs.com.
The allegations stem from a sweeping investigation into the generic pharmaceutical industry collusion.
According to court filings, Apotex and other manufacturers engaged in coordinated schemes to inflate prices, reduce competition, and restrain trade in a wide range of generic drugs. Authorities claim the conspiracies were supported by evidence, including over 20 million documents, phone records from over 600 individuals in the generics industry, and insider testimony.
The court documents describe a pattern of industry-wide collusion, with pharmaceutical executives allegedly meeting at industry dinners, cocktail parties, golf outings, and other social events to coordinate pricing strategies. Company insiders used phrases like “fair share,” “playing nice in the sandbox,” and “responsible competitor” to describe the illegal arrangements.
The Apotex settlement follows a previously announced $10 million agreement with Heritage Pharmaceuticals. Both companies have agreed to implement internal reforms and measures to ensure compliance with antitrust laws.
Additionally, six pharmaceutical executives and two former Heritage executives, Jeffery Glazer and Jason Malek, have entered settlement agreements and are cooperating with state investigators.
“As the District’s Attorney General, my office will continue to fight to protect consumers and level the playing field for law-abiding companies,” Schwalb declared.
The settlement represents a portion of a broader legal effort that began in 2016 when attorneys general filed the first of three sweeping antitrust complaints. The initial lawsuit included Heritage and 17 other companies, while subsequent complaints have expanded to include Teva Pharmaceuticals and Sandoz, among others. The complaints cover at least 80 topical generic drugs and name over 50 corporate and individual defendants.
The preliminary settlement filed Wednesday seeks court approval for Huntington Bank to serve as an escrow agent and Rust Consulting Inc. to administer notices and claims. If approved, a portion of the $39.1 million will be allocated to consumer restitution, with additional funds reserved for state agencies.
A final approval hearing will be scheduled following the court’s review of the settlement plan.
Pharmaceutical price gouging continues to be a concern throughout the District and nation, as citizens seek more action from federal leaders.
“Investigate pharmaceutical companies for price gouging the American people for life saving drugs (i.e. insulin, cancer treatment),” one social media user wrote on X, formerly known as Twitter, in response to Elon Musk, owner of X and director of the Department of Government Efficiency (DOGE), asking what someone would do in their first day in office if elected president. “Analyze the costs of healthcare on the American citizen and look at how those costs can be lowered.”