Nessel announces $49.1M in settlements with drug manufacturers Heritage and Apotex

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Michigan Attorney General Dana Nessel this week joined a coalition of 50 states and territories in announcing cooperation agreements and settlements with drugmakers Heritage Pharmaceuticals and Apotex. 

The agreement and settlements — totaling $49.1 million — were reached to resolve allegations that both companies engaged in widespread, long-running conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade of numerous generic prescription drugs. 

As part of their settlement agreements, both companies have agreed to cooperate in ongoing multistate litigation against 30 corporate defendants and 25 individual executives in the pharmaceuticals industry for similar conduct. They have also agreed to a series of internal reforms to ensure fair competition and compliance with antitrust laws.

“Those who depend on reasonably priced pharmaceuticals to manage their health suffer when corporations collude to manipulate generic drug prices,” Nessel said in a statement on Monday. “These settlements make it clear that we will not tolerate unethical behavior that prioritizes profits above people. My office is committed to maintaining fair competition and keeping businesses accountable.”

According to the Michigan Department of Attorney General, a motion for approval a $10 million settlement with Heritage has been filed in United States District Court for the District of Connecticut in Hartford. The $39.1 million settlement with Apotex is contingent on receiving signatures from all necessary states and territories and will be finalized and filed in the U.S. District Court “in the near future.”

These states and territories include other attorneys general of Alaska, Arizona, California, Connecticut, Colorado, Delaware, Washington D.C., Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, 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, South Dakota, Tennessee, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.