Minnesota Joins Other States in Lawsuit Against Prescription Drug Manufacturers

December 15, 2016 10:10 PM

Minnesota Attorney General Lori Swanson filed a lawsuit with 19 other states against six prescription drug manufacturers.

The lawsuit is centered on what she calls a price-fixing scheme for generic drugs.


Swanson called this eye popping and brazen saying drug companies colluded to fix prices so that regular people would pay more for generic drugs.

Swanson filed suit against six manufacturers of two drugs, glyburide, a diabetes drug, and doxycycline hyclate, an anti-biotic.

Swanson said the scheme included a Hertige Pharmaceutical sales repo from Minnesota who would organize dinners and parties to talk about the plan in order to keep the scheme out of email or cell phone records.

Swanson says they conspired on prices and even agreed to avoid the other customers.

“Competitors aren’t supposed to do that,” said Swanson. “They’re not supposed to get together and decided what prices they’re going to charge or who is going to go for what business. The idea of competition is to have people going head-to-head competing for the business, bringing down costs and making it more affordable for patients.”

Swanson says industry watchers noticed something was wrong because generic drugs increased in price 373 percent between 2010 and 2014.

If the states prevail, money could go back to those who paid too much for the drugs.


Nate Leding

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