Drugmakers Face Massive U.S. Price-Fixing Lawsuit Over Skincare Generics

A U.S. federal judge has ruled that 36 drugmakers and top executives must face nearly all claims in a major antitrust lawsuit alleging they conspired to fix prices of 80 generic drugs. The case is led by Connecticut and joined by 45 states, the District of Columbia, and four U.S. territories. 

The companies, which include big names such as Pfizer, Perrigo and Sandoz, are accused of raising prices, limiting competition and allocating customers between 2009 and 2016 for generics used primarily for skin ailments. 

Judge Michael Shea rejected the defendants’ argument that the states waited too long to file claims under state laws. He found sufficient evidence that the companies took “affirmative acts” to hide their alleged collusion, such as submitting inflated production costs and uncompetitive bids under the guise of supply issues. 

Brand-name drugs mentioned in the lawsuit include Differin (an acne treatment), Lotrimin AF Cream (an antifungal), and Ritalin (for ADHD). 

The case, titled Connecticut et al v. Sandoz Inc et al (U.S. District Court for the District of Connecticut, No. 20-00802), will now move into the discovery phase. Legal experts say this ruling opens the door for many more generics-pricing cases to advance.