Generic Drug Companies Accused of Price Gouging

Generic Drug Companies Accused of Price Gouging

The sweeping lawsuit alleges that drug companies conspired to inflate the prices of more than 100 different drugs.

The 500-page lawsuit, filed Friday in the U.S. District Court in CT, is seeking damages, civil penalties and actions by the court to restore competition to the generic drug market.

The lawsuit alleges about 20 companies have been involved in fixing prices for more than 100 drugs, including treatments for diabetes and cancer. Details were usually hashed out in face-to-face encounters during many swanky events such as trade shows, cocktail parties, dinners, conferences, and golf outings.

Two years later, Nielsen shared his findings at a confidential meeting with anti-trust lawyers from attorneys general in other states. The criticism has come from across the political spectrum, from President Donald Trump, a Republican, to progressive Democrats including U.S. Senator Elizabeth Warren, who is running for president.

However, it added, "Prices for hundreds of generic drugs have risen - while some have skyrocketed, without explanation, sparking outrage from politicians, payers and consumers across the country whose costs have doubled, tripled, or even increased 1,000% or more".

The surging prices of prescription drugs have drawn the attention of a number of politicians across the political spectrum from President Donald Trump to liberal Democratic presidential candidate Sen Elizabeth Warren of MA.

The new court suit was the second that has been filed in the investigation. The first suit filed in 2016 named 18 corporate defendants and two individual defendants.

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In a statement, a representative of Teva USA denied the allegations. "The company delivers high-quality medicines to patients around the world and is committed to complying with all applicable laws and regulations in doing so".

Soaring drug prices from both branded and generic manufacturers have sparked outrage and investigations in the United States. A full list of the generic drugs can be found here.

But by 2012, the suit says that Teva and the other companies chose to "take this understanding to the next level".

The lawsuit claims that executives at various pharmaceutical companies secretly conspired to fix prices, which is illegal.

"There have been no developments in this area", he said.

The suit contends that this resulted in "many billions of dollars of harm to the national economy over a period of several years". In the peak timeframe noted in the lawsuit, Teva raised its prices on about 387 formulations of 112 generic drugs.

The legal action, which follows a five-year investigation, accuses drugs companies of involvement in a scheme to boost prices - in some cases by more than 1000 percent - and was filed this week by Connecticut Attorney General William Tong.

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