Federal Prosecutors Charge Teva in Generic Drug Price-Fixing Probe

On August 25, 2020, the United States Department of Justice announced that it charged Teva Pharmaceuticals USA Inc. in Pennsylvania federal court with conspiring to fix prices, rig bids, and allocate customers for generic drugs.  The indictment accuses Teva of taking part in three conspiracies with a number of other generic drugmakers between roughly May 2013 and December 2015 that resulted in at least $350 million in overcharges to consumers.

The indictment includes three counts. The first charges Teva for its role in a conspiracy with Glenmark Pharmaceuticals Inc. USA, Apotex Corp., and other unnamed co-conspirators to increase prices for pravastatin, a cholesterol medication, and other generic drugs.  On May 7, Apotex admitted to its role in this conspiracy and agreed to pay a $24.1 million penalty. Glenmark was indicted in July. 

The second count accuses Teva, along with Taro Pharmaceuticals U.S.A., Inc. and its former executive and others, of agreeing to increase prices, rig bids, and allocate customers for generic drugs used to treat arthritis, seizures, pain, skin conditions, and blood clots.  In July, Taro admitted to its role in this and a separate conspiracy and agreed to pay a $205.7 million penalty.

The final count accuses Teva of working with Sandoz Inc. and others to increase prices, rig bids, and allocate customers for generic drugs used to treat brain cancer, cystic fibrosis, arthritis, and high blood pressure.  In March, Sandoz admitted to its role in this conspiracy, as well as in conspiracies with other generic drug manufacturers, and agreed to pay a $195 million penalty.

The charges against Teva are part of an ongoing criminal investigation by the DOJ into the generic pharmaceutical industry.  Faruqi & Faruqi represents direct purchasers in a concurrent civil action, In re Generic Pharmaceuticals Pricing Antitrust Litigation, in the Eastern District of Pennsylvania.