DES MOINES, IOWA (June 10, 2020) ― Attorney General Tom Miller joined a coalition of 51 attorneys general filing the third lawsuit stemming from an antitrust investigation into a widespread conspiracy by generic drug manufacturers to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade for generic drugs sold across the United States.

This new complaint, filed in the US District Court for the District of Connecticut, focuses on 80 topical generic drugs that account for billions of dollars of sales in the United States. The complaint names 26 corporate defendants and 10 individual defendants. The lawsuit seeks damages, civil penalties, and actions by the court to restore competition to the generic drug market.

The topical drugs at the center of the complaint include creams, gels, lotions, ointments, shampoos, and solutions used to treat a variety of skin conditions, pain, and allergies.

“The list of defendants involved in the collusion alleged in this lawsuit is long, but the list of victims is longer,” AG Miller said. “Iowa consumers, businesses, and tax-payers have paid excessive prices because of this multi-billion-dollar fraud.”

The complaint stems from an ongoing investigation built on evidence from several cooperating witnesses at the core of the conspiracy, a massive database of more than 20 million documents, and a phone-records database containing millions of call-detail records and contact information for more than 600 sales and pricing individuals in the generics industry. Among the records obtained by the states is a two-volume notebook containing the contemporaneous notes of one of the states’ cooperators that memorialized his discussions during phone calls with competitors and internal company meetings over a period of several years.

Between 2007 and 2014, three generic-drug manufacturers, Taro, Perrigo, and Fougera (now Sandoz) sold nearly two-thirds of all generic topical products dispensed in the United States. The multistate investigation has uncovered comprehensive, direct evidence of unlawful agreements to minimize competition and raise prices on dozens of topical products. The complaint alleges longstanding agreements among manufacturers to ensure a “fair share” of the market for each competitor, and to prevent “price erosion” due to competition.

The complaint is the third to be filed in an expanding investigation that the Connecticut Office of the Attorney General has referred to as possibly the largest domestic corporate cartel case in the history of the United States.

Iowa joined the first complaint in December 2016 against Heritage Pharmaceuticals and other generic drug makers. The first complaint, still pending in the U.S. District Court in the Eastern District of Pennsylvania, now includes 18 corporate defendants, two individual defendants, and 15 generic drugs. Two former executives from Heritage Pharmaceuticals, Jeffery Glazer, and Jason Malek, have entered into settlement agreements and are cooperating with the attorneys general working group in that case.

Iowa joined the second complaint in May 2019 against Teva Pharmaceuticals and 19 of the nation's largest generic drug manufacturers. That second complaint, also pending in the US District Court in the Eastern District of Pennsylvania,  names 16 individual senior executive defendants. The states are preparing for trial on that complaint.

Drugs listed in the complaint as subject to price fixing and market allocation agreements:  

  1. Acetazolamide Tablets
  2. Adapalene Cream
  3. Alclometasone Dipropionate Cream
  4. Alclometasone Dipropionate Ointment
  5. Ammonium Lactate Cream
  6. Ammonium Lactate Lotion
  7. Betamethasone Dipropionate Cream
  8. Betamethasone Dipropionate Lotion
  9. Betamethasone Valerate Cream
  10. Betamethasone Valerate Lotion
  11. Betamethasone Valerate Ointment
  12. Bromocriptine Mesylate Tablets
  13. Calcipotriene Solution
  14. Calcipotriene Betamethasone Dipropionate Ointment
  15. Carbamazepine ER Tablets
  16. Cefpodoxime Proxetil Oral Suspension
  17. Cefpodoxime Proxetil Tablets
  18. Ciclopirox Cream
  19. Ciclopirox Shampoo
  20. Ciclopirox Solution
  21. Clindamycin Phosphate Cream
  22. Clindamycin Phosphate Gel
  23. Clindamycin Phosphate Lotion
  24. Clindamycin Phosphate Solution
  25. Clobetasol Propionate Cream
  26. Clobetasol Propionate Emollient Cream
  27. Clobetasol Propionate Gel
  28. Clobetasol Propionate Ointment
  29. Clobetasol Propionate Solution
  30. Clotrimazole 1% Cream
  31. Clotrimazole Betamethasone Dipropionate Cream
  32. Clotrimazole Betamethasone Dipropionate Lotion
  33. Desonide Cream
  34. Desonide Lotion
  35. Desonide Ointment
  36. Desoximetasone Ointment
  37. Econazole Nitrate Cream
  38. Eplerenone Tablets
  39. Erythromycin Base/Ethyl Alcohol Solution
  40. Ethambutol HCL Tablets
  41. Fluocinolone Acetonide Cream
  42. Fluocinolone Acetonide Ointment
  43. Fluocinonide .1% Cream
  44. Fluocinonide Gel
  45. Fluocinonide Ointment
  46. Fluocinonide Solution
  47. Fluticasone Propionate Lotion
  48. Griseofulvin Microsize Tablets
  49. Halobetasol Propionate Cream
  50. Halobetasol Propionate Ointment
  51. Hydrocortisone Acetate Suppositories
  52. Hydrocortisone Valerate Cream
  53. Imiquimod Cream
  54. Ketoconazole Cream
  55. Latanoprost Drops
  56. Lidocaine Ointment
  57. Methazolamide Tablets
  58. Methylphenidate HCL Tablets
  59. Methylphenidate HCL ER Tablets
  60. Metronidazole Cream
  61. Metronidazole .75% Gel
  62. Metronidazole .1% Gel
  63. Metronidazole Lotion
  64. Mometasone Furoate Cream
  65. Mometasone Furoate Ointment
  66. Mometasone Furoate Solution
  67. Nafcillin Sodium Injectable Vials
  68. Nystatin Ointment
  69. Nystatin Triamcinolone Cream
  70. Nystatin Triamcinolone Ointment
  71. Oxacillin Sodium Injectable Vials
  72. Phenytoin Sodium ER Capsules
  73. Pioglitazone HCL Metformin HCL Tablets
  74. Prochlorperazine Maleate Suppositories
  75. Promethazine HCL Suppositories
  76. Tacrolimus Ointment
  77. Terconazole Cream
  78. Triamcinolone Acetonide Cream
  79. Triamcinolone Acetonide Ointment
  80. Triamcinolone Acetonide Paste

Corporate defendants:  

  1. Sandoz Inc
  2. Actavis Holdco US Inc
  3. Actavis Elizabeth LLC
  4. Actavis Pharma Inc
  5. Amneal Pharmaceuticals Inc
  6. Amneal Pharmaceuticals LLC
  7. Aurobindo Pharma USA Inc
  8. Bausch Health Americas Inc
  9. Bausch Health, US LLC
  10. Fougera Pharmaceuticals Inc
  11. G&W Laboratories Inc
  12. Glenmark Pharmaceuticals Inc USA 
  13. Greenstone LLC 
  14. Lannett Company Inc
  15. Lupin Pharmaceuticals Inc
  16. Mallinckrodt Inc
  17. Mallinckrodt plc
  18. Mallinckrodt LLC
  19. Mylan Inc
  20. Mylan Pharmaceuticals Inc
  21. Perrigo New York Inc
  22. Pfizer Inc
  23. Sun Pharmaceutical Industries Inc 
  24. Taro Pharmaceuticals USA Inc
  25. Teligent Inc
  26. Wockhardt USA LLC

Individual defendants:  

  1. Ara Aprahamian, the Vice President of Sales and Marketing  at defendant Taro Pharmaceuticals USA Inc.
  2. Mitchell Blashinsky, the Vice President of Marketing for Generics at defendant Taro Pharmaceuticals USA Inc from January 2007 through May 2012, and Vice President of Sales and Marketing at defendant Glenmark Pharmaceuticals Inc USA from June 2012 through March 2014.
  3. Douglas Boothe, the Chief Executive Officer of defendant Actavis from August 2008 through December 2012 and the Executive Vice President and General Manager of defendant Perrigo New York, Inc. from January 2013 through July 2016.
  4. James Grauso, the former Vice President of Sales and Marketing at defendant G&W Laboratories from January 2010 through December 2011; the Senior Vice President, Commercial Operations for defendant Aurobindo from December 2011 through January 2014; and the Executive Vice President, NA Commercial Operations at defendant Glenmark from February 2014 to the present.
  5. Walt Kaczmarek, the Senior Director, National Accounts, Vice President, National Accounts and Senior Vice President, Commercial Operations from November 2004 through November 2012 for Fougera Pharmaceuticals, a division of Nycomed US Inc (currently part of defendant Sandoz Inc), and Vice President General Manager, and President, Multi-Source Pharmaceuticals from November 2013 through August 2016 for defendant Mallinckrodt.
  6. Armando Kellum, the former Vice President, Contracting and Business Analytics at Sandoz.
  7. Kurt Orlofski, the President and Chief Executive Officer from April 2007 through August 2009 for defendant Wockhardt USA, and President of defendant G&W Labs, Inc. from September 2009 through December 2016.
  8. Mike Perfetto, the Vice President of Sales and Marketing for defendant Actavis from August 2003 through January 2013, and the Chief Commercial Officer for defendant Taro from January 2013 through his recent retirement from the company.
  9.  Erika Vogel-Baylor, the former Vice President for Sales and Marketing for defendant G&W Labs Inc since July 2011.
  10.  John Wesolowski, the Senior Vice President of Commercial Operations for defendant Perrigo since February 2004.

In filing the complaint, Attorney General Miller joined the attorneys general of Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Territory of Guam, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia, and Wisconsin. 

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