Complaint Names 26 Corporate Defendants, 10 Individual Defendants in Conspiracy to Fix Prices and Allocate Markets for at least 83 Generic Topical Dermatological Drugs

JEFFERSON CITY, Mo. – Attorney General Eric Schmitt joined a coalition of 51 states, districts, and territories led by Connecticut, filing the third lawsuit stemming from the ongoing antitrust investigation into a widespread conspiracy by generic drug manufacturers to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade for generic drugs sold across the United States.

“Missourians depend on generic drugs every single day to help treat a number of ailments and illnesses, from cancer to acne,” said Attorney General Schmitt, “Artificially inflating and manipulating prices hurts thousands of Missourians. My office will continue to work with other attorneys general to hold these pharmaceutical companies responsible.”

This new Complaint, filed in the U.S. District Court for the District of Connecticut, focuses on 83 topical generic drugs that account for billions of dollars of sales in the United States. The Complaint names 26 corporate Defendants and 10 individual Defendants. The lawsuit seeks, among other things, disgorgement of ill-gotten gains, civil penalties, and actions by the court to restore competition to the generic drug market. The topical drugs at the center of the Complaint include creams, gels, lotions, ointments, shampoos, and solutions used to treat a variety of skin conditions, pain, and allergies.

The Complaint stems from an ongoing investigation built on evidence from several cooperating witnesses at the core of the conspiracy, a massive document database of over 20 million documents, and a phone records database containing millions of call detail records and contact information for over 600 sales and pricing individuals in the generics industry. Among the records obtained by the States is a two-volume notebook containing the contemporaneous notes of one of the States’ cooperators that memorialized his discussions during phone calls with competitors and internal company meetings over a period of several years.

Between 2007 and 2014, three generic drug manufacturers, Taro, Perrigo, and Fougera (now Sandoz) sold nearly two-thirds of all generic topical products dispensed in the United States. The multistate investigation has uncovered comprehensive, direct evidence of unlawful agreements to minimize competition and raise prices on dozens of topical products. The Complaint alleges longstanding agreements among manufacturers to ensure a “fair share” of the market for each competitor, and to prevent “price erosion” due to competition.

The Complaint is the third to be filed in an ongoing, expanding investigation that the Connecticut Office of the Attorney General has referred to as possibly the largest domestic corporate cartel case in the history of the United States. The first Complaint, still pending in the U.S. District Court in the Eastern District of Pennsylvania, was filed in 2016 and now includes 18 corporate Defendants, two individual Defendants, and 15 generic drugs. Two former executives from Heritage Pharmaceuticals, Jeffery Glazer and Jason Malek, have entered into settlement agreements and are cooperating with the Attorneys General working group in that case. The second Complaint, also pending in the U.S. District Court in the Eastern District of Pennsylvania, was filed in 2019 against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers. The Complaint names 16 individual senior executive Defendants. The States are currently preparing for trial on that Complaint.

The States’ newest Complaint brings claims against the following corporate Defendants:

1. Sandoz, Inc.
2. Actavis Holdco U.S., Inc.
3. Actavis Elizabeth LLC
4. Actavis Pharma, Inc.
5. Amneal Pharmaceuticals, Inc.
6. Amneal Pharmaceuticals, LLC
7. Aurobindo Pharma USA, Inc.
8. Bausch Health Americas, Inc.
9. Bausch Health, US LLC
10. Fougera Pharmaceuticals, Inc.
11. G&W Laboratories, Inc.
12. Glenmark Pharmaceuticals Inc., USA
13. Greenstone LLC
14. Lannett Company, Inc.
15. Lupin Pharmaceuticals, Inc.
16. Mallinckrodt Inc.
17. Mallinckrodt plc
18. Mallinckrodt LLC
19. Mylan Inc.
20. Mylan Pharmaceuticals Inc.
21. Perrigo New York, Inc.
22. Pfizer, Inc.
23. Sun Pharmaceutical Industries, Inc.
24. Taro Pharmaceuticals USA, Inc.
25. Teligent, Inc.
26. Wockhardt USA, LLC

In addition, the following individuals are named as Defendants for their role in the anticompetitive schemes:

1. Ara Aprahamian, the Vice President of Sales and Marketing at Defendant Taro Pharmaceuticals U.S.A, Inc.

2. Mitchell Blashinsky, the Vice President of Marketing for Generics at Defendant Taro Pharmaceuticals USA, Inc. from January 2007 through May 2012, and Vice President of Sales and Marketing at Defendant Glenmark Pharmaceuticals Inc., USA from June 2012 through March 2014.

3. Douglas Boothe, the Chief Executive Officer of Defendant Actavis from August 2008 through December 2012 and the Executive Vice President and General Manager of Defendant Perrigo New York, Inc. from January 2013 through July 2016.

4. James Grauso, the former Vice President of Sales and Marketing at Defendant G&W Laboratories from January 2010 through December 2011; the Senior Vice President, Commercial Operations for Defendant Aurobindo from December 2011 through January 2014; and the Executive Vice President, N.A. Commercial Operations at Defendant Glenmark from February 2014 to the present.

The States’ newest Complaint alleges the defendants engaged in price-fixing and market allocation agreements on the following drugs:

1. Acetazolamide Tablets
2. Adapalene Cream
3. Alclometasone Dipropionate Cream
4. Alclometasone Dipropionate Ointment
5. Ammonium Lactate Cream
6. Ammonium Lactate Lotion
7. Betamethasone Dipropionate Cream
8. Betamethasone Dipropionate Lotion
9. Betamethasone Valerate Cream
10. Betamethasone Valerate Lotion
11. Betamethasone Valerate Ointment
12. Bromocriptine Mesylate Tablets
13. Calcipotriene Solution
14. Calcipotriene Betamethasone Dipropionate Ointment
15. Carbamazepine ER Tablets
16. Cefpodoxime Proxetil Oral Suspension
17. Cefpodoxime Proxetil Tablets
18. Chlorpromazine HCL Tablets
19. Cholestyramine (with Sugar) Powder
20. Cholestyramine/Aspartame Powder
21. Ciclopirox Cream
22. Ciclopirox Shampoo
23. Ciclopirox Solution
24. Clindamycin Phosphate Cream
25. Clindamycin Phosphate Gel
26. Clindamycin Phosphate Lotion
27. Clindamycin Phosphate Solution
28. Clobetasol Propionate Cream
29. Clobetasol Propionate Emollient Cream
30. Clobetasol Propionate Gel
31. Clobetasol Propionate Ointment
32. Clobetasol Propionate Solution
33. Clotrimazole 1% Cream
34. Clotrimazole Betamethasone Dipropionate Cream
35. Clotrimazole Betamethasone Dipropionate Lotion
36. Desonide Cream
37. Desonide Lotion
38. Desonide Ointment
39. Desoximetasone Ointment
40. Econazole Nitrate Cream
41. Eplerenone Tablets
42. Erythromycin Base/Ethyl Alcohol Solution
43. Ethambutol HCL Tablets
44. Fluocinolone Acetonide Cream
45. Fluocinolone Acetonide Ointment
46. Fluocinonide .1% Cream
47. Fluocinonide Gel
48. Fluocinonide Ointment
49. Fluocinonide Solution
50. Fluticasone Propionate Lotion
51. Griseofulvin Microsize Tablets
52. Halobetasol Propionate Cream
53. Halobetasol Propionate Ointment
54. Hydrocortisone Acetate Suppositories
55. Hydrocortisone Valerate Cream
56. Imiquimod Cream
57. Ketoconazole Cream
58. Latanoprost Drops
59. Lidocaine Ointment
60. Methazolamide Tablets
61. Methylphenidate HCL Tablets
62. Methylphenidate HCL ER Tablets
63. Metronidazole Cream
64. Metronidazole .75% Gel
65. Metronidazole .1% Gel
66. Metronidazole Lotion
67. Mometasone Furoate Cream
68. Mometasone Furoate Ointment
69. Mometasone Furoate Solution
70. Nafcillin Sodium Injectable Vials
71. Nystatin Ointment
72. Nystatin Triamcinolone Cream
73. Nystatin Triamcinolone Ointment
74. Oxacillin Sodium Injectable Vials
75. Phenytoin Sodium ER Capsules
76. Pioglitazone HCL Metformin HCL Tablets
77. Prochlorperazine Maleate Suppositories
78. Promethazine HCL Suppositories
79. Tacrolimus Ointment
80. Terconazole Cream
81. Triamcinolone Acetonide Cream
82. Triamcinolone Acetonide Ointment
83. Triamcinolone Acetonide Paste

Attorney General Schmitt joined the attorneys general of Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Territory of Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, 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, Tennessee, Utah, U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia and Wisconsin in filing the complaint.