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  • Writer's pictureSamantha Suchy

Generic Pharmaceuticals Pricing Antitrust Litigation

Updated: June 2022



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

Indirect Purchasers-including resellers, consumers and end payors such as benefit plans-continue their litigation against generic drugmakers with a tentative trial date set for Spring/Summer 2024. Recently, two defendants created a $1 million settlement for a class of Indirect Reseller Plaintiffs-including hospitals and independent pharmacies. At this time there is no filing deadline or additional information as it is expected the claims process will not initiate until additional defendants settle (there are dozens of defendants) and the fund is aggregated.

MCAG continues to monitor for additional settlements and details on the filing process. Please feel free to contact our Account Services team to discuss further.


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