A federal grand jury indicted Ara Aprahamian, an executive at Taro Pharmaceutical Industries, for violating the antitrust laws and for lying to FBI investigators. Aprahamian is now the third executive charged in the DOJ’s investigation into the generic drug industry, with the other two executives having already pled guilty. Two manufacturers, Heritage Pharmaceuticals and Rising Pharmaceuticals, similarly admitted to price-fixing in deferred prosecution agreements last year.
The grand jury indicted Aprahamian on two counts of price-fixing, alleging he participated in two separate conspiracies. Among other things, the indictment charges Aprahamian with allocating customers and agreeing to prices increases on dozens of drugs, and with at least two different competitors. These charges were supported by the testimony of four confidential witnesses, each of whom worked for one of the two competitors with which Aprahamian is charged with conspiring. On top of the antitrust violations, the DOJ also hit Aprahamian with a charge for falsely stating, during the execution of a search warrant at Taro’s headquarters, that “he never had a conversation with a competitor about the pricing of a product before that product was launched.” In the DOJ’s ongoing investigation, this charge serves as a warning to all other executives at generic drug manufacturers. The DOJ has made its message clear: "We're not done."
Faruqi & Faruqi represents direct purchasers in a related case, In re Generic Pharmaceuticals Pricing Antitrust Litigation.
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Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour, personal injury and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Delaware, Georgia and Pennsylvania.
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About Raymond N. Barto
Raymond N. Barto's practice is focused on antitrust litigation. Ray is a senior associate in the firm's New York office.Prior to joining F&F, Ray was an associate at a prominent New York City law firm where he represented consumers, shareholders, and employees in class action cases that involved consumer fraud, breach of fiduciary duty, and ERISA.While at Brooklyn Law School, Ray served as an Articles Editor for the Brooklyn Law Review. As well, Ray served as an intern to the Honorable Judge William Pauley III of the United States District Court for the Southern District of New York; the United States Attorney's Office for the Eastern District of New York; the litigation department for Marsh & McLennan Companies; and the Kings County District Attorney's Office.