• jodilorigan

Generic Pharmaceuticals Pricing Antitrust Litigation

Updated: Dec 16, 2021

Updated: December 2021



Drug-makers of all sizes face allegations from the Department of Justice’s Antitrust Division (DOJ), State Attorneys General and private litigants that accuse the defendants of conspiring to cut down on competition and keep prices of over three hundred generic drugs artificially high.

While there are no actionable items at present, MCAG wishes to notify you of the opportunity as the lawsuits may result in significant settlements. Potential class members include Hospitals and businesses that operate as self-funded payors on behalf of their employee benefit plans (i.e. End-Payors).


Typically, once a drug patent expires, generic manufacturers are given the green light to copy the drug and sell it as a generic version at a lesser price than its brand name equivalent. The US government has been investigating the generic drug industry since 2016 and claims to hold evidence that generic manufacturers conspired to split up the market and keep prices high. It is alleged the drug-makers kept drug price levels up at an alarming rate, frequently by more than 1,000 percent, over several years.

The amount of alleged overcharges has not been disclosed, but it is estimated that generic-industry sales were around $104 billion in 2017. The Association for Accessible Medicines states that generics account for 90 percent of the prescriptions in the United States.

Recent Activity

There is recent momentum in the case. The DOJ, which has been conducting its own investigation, reached settlements with several Defendants in October 2021. In November 2021, two Defendants reached settlements with the direct purchaser class as well. As we await the trials of the selected bellwethers, which will help predict the outcome of the End-Payor track, MCAG is closely monitoring court activity regarding Class Certification and related rulings.

MCAG continues to actively monitor this sprawling MDL in hopes of finding financial recovery opportunities for its clients. Please feel free to contact our Account Services team to discuss further.