Rutledge extends fight against generic drug price hike

Local News

Arkansas Attorney General says ‘they coordinated efforts to manipulate the marketplace, and it is people’s health that suffers’

LITTLE ROCK, Ark. (News release) – Arkansas Attorney General Leslie Rutledge today announced joining a multistate amended complaint against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers. The lawsuit alleges a broad conspiracy to artificially inflate and control prices, reduce competition and unreasonably restrain trade for more than 100 different generic drugs. The lawsuit includes 53 states and territories.

“Arkansans rely on these life-saving drugs to manage a range of medical issues from diabetes to cancer,” said Attorney General Rutledge. “The evidence against these companies proves that they coordinated efforts to manipulate the marketplace, and it is people’s health that suffers. This lawsuit holds all 20 companies accountable for its exploitative practices.”
The lawsuit, filed in U.S. District Court for the District of Connecticut, also names 15 individual senior executive defendants at the heart of the conspiracy who were responsible for sales, marketing, pricing and operations. The drugs account for billions of dollars of sales in the United States. The alleged schemes increased prices affecting the health insurance market and taxpayer-funded healthcare programs like Medicare and Medicaid.

The complaint alleges that Teva, Sandoz, Mylan, Pfizer and 16 other generic drug manufacturers engaged in a broad, coordinated and systematic campaign to conspire with each other to fix prices, allocate markets and rig bids for more than 100 different generic drugs. The drugs treat a range of diseases and conditions from basic infections to diabetes, epilepsy, multiple sclerosis, HIV, ADHD, cancer and more. In some instances, the coordinated price increases were over 1,000 percent.

The lawsuit seeks damages, civil penalties and actions by the court to restore competition to the generic drug market.

In addition to Arkansas, the lawsuit is led by Connecticut and includes the following states and territories: American Samoa, Alabama, Alaska, Arizona, Colorado, Commonwealth of Northern Mariana Islands, Delaware, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Caroline, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, Washington, D.C., West Virginia, Wisconsin, Wyoming.

Corporate Defendants

  1. Teva Pharmaceuticals USA, Inc.
  2. Sandoz, Inc.
  3. Mylan Pharmaceuticals Inc.
  4. Actavis Holdco US, Inc.
  5. Actavis Pharma, Inc.
  6. Amneal Pharmaceuticals, Inc.
  7. Apotex Corp.
  8. Aurobindo Pharma U.S.A., Inc.
  9. Breckenridge Pharmaceutical, Inc.
  10. Reddy’s Laboratories, Inc.
  11. Glenmark Pharmaceuticals Inc. USA
  12. Greenstone LLC
  13. Lannett Company, Inc.
  14. Lupin Pharmaceuticals, Inc.
  15. Par Pharmaceutical Companies, Inc.
  16. Pfizer, Inc.
  17. Taro Pharmaceuticals USA, Inc.
  18. Upsher-Smith Laboratories, LLC
  19. Wockhardt USA, LLC
  20. Zydus Pharmaceuticals (USA), Inc.

Individual defendants

  1. Ara Aprahamian, Vice President of Sales and Marketing at Taro Pharmaceuticals U.S.A, Inc.
  2. David Berthold, Vice President of Sales at Lupin Pharmaceuticals, Inc.
  3. James Brown, Vice President of Sales at Glenmark Pharmaceuticals, Inc.
  4. Maureen Cavanaugh, former Senior Vice President and Chief Commercial Officer, North America, for Teva
  5. Marc Falkin, former Vice President, Marketing, Pricing and Contracts at Actavis
  6. James Grauso, former Senior Vice President, Commercial Operations for Aurobindo from December 2011 through January 2014. Since February 2014, Grauso has been employed as the Executive Vice President, N.A. Commercial Operations at Glenmark
  7. Kevin Green, former Director of National Accounts at Teva from January 2006 through October 2013. Since November 2013, Green has worked at Zydus Pharmaceuticals (USA) Inc. as the Vice President of Sales
  8. Armando Kellum, former Vice President, Contracting and Business Analytics at Sandoz
  9. Jill Nailor, Senior Director of Sales and National Accounts at Greenstone
  10. James Nesta, Vice President of Sales at Mylan
  11. Kon Ostaficiuk, the President of Camber Pharmaceuticals, Inc.
  12. Nisha Patel, former Director of Strategic Customer Marketing and later, Director of National Accounts at Teva.
  13. David Rekenthaler, former Vice President, Sales US Generics at Teva
  14. Richard Rogerson, former Executive Director of Pricing and Business Analytics at Actavis
  15. Tracy Sullivan DiValerio, Director of National Accounts at Lannett

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