48 States Open Claims for $96.5 Million Drug Settlement

The U.S. District Court for the District of Connecticut has granted preliminary approval for a plan to distribute approximately $96.5 million to consumers and businesses who purchased certain generic drugs between May 2009 and December 2019. The funds result from settlements with manufacturers including Glenmark, Lannett, Bausch, Apotex, Heritage, and Heritage's parent company, Emcure, following allegations that the companies illegally conspired to inflate prices and divide market share.

Attorneys general from a coalition of 48 states and territories, including those from Washington, Wisconsin, Maryland, and North Dakota, are now urging eligible residents to submit claims. While most states are focusing on consumer restitution, Washington and Idaho have specifically approved restitution for impacted businesses. These settlements are part of a broader series of antitrust cases that began in 2016, which include complaints against Teva Pharmaceuticals and others alleging a culture of collusion where executives used phrases like "playing nice in the sandbox" to discourage competition.

State officials have emphasized the unlawful nature of the price manipulation. Maryland Attorney General Anthony Brown stated that the companies "unlawfully conspired to drive up the price of generic drugs," while Wisconsin Attorney General Josh Kaul noted that residents should not have to pay more because prices were "improperly manipulated."