Illinois Attorney General Kwame Raoul has joined a coalition of 45 states and territories seeking court approval of settlements with three generic drug manufacturers accused of conspiring to raise drug prices and limit competition.
The settlements, filed in the U.S. District Court for the District of Connecticut, involve Ascend Laboratories, Citron Pharma and Mayne Pharma. They resolve allegations that the companies took part in a long-running conspiracy to inflate and manipulate prices, reduce competition and restrain trade on numerous generic prescription drugs.
Under the terms, Ascend will pay about $400,000 and Mayne will pay about $650,000. Citron agreed to non-monetary terms because it has ceased operations. Each company also agreed to injunctive terms, including internal reforms to ensure fair competition.
"As Americans continue to struggle with rising costs, generic drug companies colluded with each other to raise prices on needed medications for their own financial gain," Raoul said. "I am pleased with today's settlements and will continue to work with fellow attorneys general to hold drug manufacturers accountable for their unfair and unlawful practices."
According to the attorney general's office, the settlements follow three separate lawsuits filed against nearly 50 generic drug manufacturers. The lawsuits allege executives of competing companies negotiated illegal agreements at industry dinners, trade shows and conferences, and coordinated price increases that in some cases topped 1,000%.
The affected drugs span many types and classes used to treat conditions ranging from basic infections to diabetes, cancer, epilepsy, multiple sclerosis, HIV and ADHD, the office said.
Raoul and participating states have previously secured settlements with Sandoz, Glenmark, Lannett, Bausch, Apotex and Heritage, and Heritage's parent company, Emcure, totaling $496.5 million. The cases against remaining defendants continue, with a trial anticipated in 2027.
The attorney general's office said Illinoisans who purchased a generic prescription drug between May 2009 and December 2019 may be eligible for compensation. For details, individuals can call 1-866-290-0182, email info@AGGenericDrugs.com or visit www.AGGenericDrugs.com.