Four New Suits Filed in MDL Over Alleged Pharma Price-Fixing Scheme

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Four new complaints have been filed in Pennsylvania federal court as part of a multidistrict litigation (MDL) that claims various pharmaceutical companies conspired to fix the prices of generic drugs.

The first complaint names Akorn, Inc., Fougera Pharmaceuticals Inc., Hi-Tech Pharmacal, Impax Laboratories, Inc., and Sandoz, Inc. as defendants, and alleges that they artificially inflated the price of lidocaine/prilocaine cream, which is a local anesthetic.

The second complaint lists defendants Par Pharmaceuticals, Inc., Teva Pharmaceuticals USA, Inc., and Upsher-Smith Laboratories, Inc., and argues that the companies fixed prices of generic baclofen. According to the suit, baclofen is “a commonly prescribed drug in the United States, used to treat muscle spasms and cramping, particularly for people with multiple sclerosis, injury, or disease of the spinal cord.”

Aurobindo Pharma USA, Inc., Citron Pharma, LLC, Heritage Pharmaceuticals, Inc., and Teva Pharmaceuticals USA, Inc. are named in the third complaint and accused of fixing prices of generic glyburide, a drug used to treat high blood sugar caused by Type 2 diabetes.

The fourth complaint accuses Mylan, Inc., Mylan Pharmaceuticals, Inc., and Sandoz, Inc. of conspiring to raise the prices of generic benazepril HCTZ, which is used to treat high blood pressure and kidney disease.

The suits argue that the market for generic drugs has remained stable, while prices of these medicines have risen substantially. These “dramatic and unexplained price increases” can only be caused by the defendants’ illegal pricing scheme, the suits claim.

The complaints also note that the defendants have been the subject of “extensive and ongoing scrutiny” by federal and state regulators, and that U.S. Department of Justice Antitrust Division suspects that these price-fixing practices are “industry-wide.”

Complaint 1

Complaint 2

Complaint 3

Complaint 4