Glenmark to Pay More Than $29 Million in Multistate Generic Drug Price-Fixing Settlement

Key Takeaways

• $29.7 Million Settlement: Glenmark Pharmaceuticals will pay a total of $29.668 million, including interest, to resolve allegations of participating in a multistate generic drug price-fixing scheme.
• Consumers May Be Eligible for Compensation: Individuals who purchased eligible generic prescription drugs between May 2009 and December 2019 may qualify for restitution once the claims process opens.
• Part of Broader Litigation: The settlement is one component of ongoing multistate lawsuits alleging coordinated price-fixing, bid-rigging, and market allocation involving dozens of pharmaceutical companies and more than 100 generic drugs.
• Alleged Widespread Impact: The lawsuits allege the scheme affected medications used to treat numerous conditions, including diabetes, cancer, HIV, epilepsy, and ADHD, with some prices allegedly increasing by more than 1,000%.
• Compliance Reforms Required: Glenmark has agreed to establish an antitrust compliance program and provide annual antitrust training for sales and management personnel.

Deep Dive

A bipartisan coalition of 49 attorneys general has secured more than $29 million from Glenmark Pharmaceuticals to resolve allegations that the company participated in a long-running scheme to inflate the prices of generic prescription drugs, New York Attorney General Letitia James announced Wednesday.

The settlement is part of an ongoing multistate antitrust effort targeting dozens of pharmaceutical companies accused of coordinating the pricing and supply of generic medications rather than competing against one another. According to the allegations, the conduct affected essential medicines used to treat conditions ranging from diabetes and cancer to ADHD, with some drug prices increasing by more than 1,000%.

Attorney General James urged New Yorkers who may have purchased affected generic prescription drugs between May 2009 and December 2019 to determine whether they are eligible for compensation through the settlement. Consumers will be able to submit claims once the claims process opens.

“Affordable generic drugs are a lifeline for New Yorkers with heart conditions, diabetes, and a range of other chronic illnesses,” James said in a statement. “Glenmark and other companies worked behind the scenes to boost their profits by illegally coordinating to raise drug prices, and now we are getting justice for the consumers who were harmed.”

Long-Running Antitrust Litigation

The Glenmark settlement stems from three lawsuits filed by the New York Office of the Attorney General and a coalition of state attorneys general against some of the nation's largest generic drug manufacturers. The first complaint named 18 corporate defendants, two individual defendants, and involved 15 generic drugs. Two former Heritage Pharmaceuticals executives, Jeffery Glazer and Jason Malek, later reached settlement agreements and have cooperated with the states' investigation.

A second lawsuit, filed in 2019, targeted Teva Pharmaceuticals along with 19 other generic drug manufacturers and named 16 senior executive defendants. A third case, which is scheduled to be tried first, centers on 80 primarily topical generic drugs representing billions of dollars in U.S. sales and names 26 corporate defendants and 10 individual defendants. According to the coalition, six additional pharmaceutical executives have also entered settlement agreements and are cooperating with the states' claims across all three cases.

The lawsuits allege that the companies engaged in a broad conspiracy to fix prices, allocate markets, avoid competition, and rig bids involving more than 100 generic drugs. State attorneys general allege that executives maintained regular contact through industry dinners, lunches, cocktail parties, golf outings, telephone calls, emails, and text messages, using phrases such as "fair share," "playing nice in the sandbox," and "responsible competitor" to reinforce arrangements designed to suppress competition.

The alleged conduct involved a wide range of generic medications, including tablets, capsules, creams, and ointments, across therapeutic categories such as antibiotics, antidepressants, contraceptives, and non-steroidal anti-inflammatory drugs. According to the lawsuits, the medications treated conditions including infections, diabetes, cancer, epilepsy, multiple sclerosis, HIV, and ADHD.

Under the agreement, Glenmark will pay $25 million, plus interest over the next four years, bringing the total settlement amount to $29.668 million. The funds will be distributed to consumers affected by the alleged conduct across the participating states. In addition to the financial payment, Glenmark has agreed to implement internal reforms aimed at strengthening compliance with antitrust laws. Those measures include establishing an antitrust compliance program and providing annual antitrust training to sales and management employees.

New Yorkers who purchased eligible generic prescription drugs between May 2009 and December 2019 are encouraged by the Office of the Attorney General to determine whether they qualify for compensation and register before the claims process begins.

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