Press Release

Alaska Attorney General Joins Coalition Filing 3rd Complaint in Ongoing Antitrust Price-Fixing Investigation into Generic Drug Industry

Complaint Names 26 Corporate Defendants, 10 Individual Defendants in Conspiracy to Fix Prices and Allocate Markets for at least 80 Generic Topical Dermatological Drugs

June 10, 2020

(Anchorage, AK) – Alaska Attorney General Kevin G. Clarkson joined a coalition of 51 attorneys general 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. This new Complaint (22MB PDF), filed in the U.S. District Court for the District of Connecticut, focuses on 80 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 damages, 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.

Attorney General Kevin Clarkson says, “This is an ongoing investigation outlining a conspiracy to fix prices for many important generic drugs that Alaskans and others rely on for health and safety. I join other attorneys general around the country seeking to ensure safe and affordable medications for all.”

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.

Corporate Defendants:

Sandoz, Inc.
Actavis Holdco U.S., Inc.
Actavis Elizabeth LLC
Actavis Pharma, Inc.
Amneal Pharmaceuticals, Inc.
Amneal Pharmaceuticals, LLC
Aurobindo Pharma USA, Inc.
Bausch Health Americas, Inc.
Bausch Health, US LLC
Fougera Pharmaceuticals, Inc.
G&W Laboratories, Inc.
Glenmark Pharmaceuticals Inc., USA
Greenstone LLC
Lannett Company, Inc.
Lupin Pharmaceuticals, Inc.
Mallinckrodt Inc.
Mallinckrodt plc
Mallinckrodt LLC
Mylan Inc.
Mylan Pharmaceuticals Inc.
Perrigo New York, Inc.
Pfizer, Inc.
Sun Pharmaceutical Industries, Inc.
Taro Pharmaceuticals USA, Inc.
Teligent, Inc.
Wockhardt USA, LLC

Individual Defendants:

Ara Aprahamian, the Vice President of Sales and Marketing at Defendant Taro Pharmaceuticals U.S.A, Inc.
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.
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.
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.
Walt Kaczmarek, the Senior Director, National Accounts, Vice President, National Accounts and Senior Vice President, Commercial Operations from November 2004 through November 2012 for Fougera Pharmaceuticals, a division of Nycomed US, Inc. (currently part of Defendant Sandoz, Inc.), and Vice President - General Manager, and President, Multi-Source Pharmaceuticals from November 2013 through August 2016 for Defendant Mallinckrodt.
Armando Kellum, the former Vice President, Contracting and Business Analytics at Sandoz.
Kurt Orlofski, the President and Chief Executive Officer from April 2007 through August 2009 for Defendant Wockhardt USA, and President of Defendant G&W Labs, Inc. from September 2009 through December 2016.
Mike Perfetto, the Vice President of Sales and Marketing for Defendant Actavis from August 2003 through January 2013, and the Chief Commercial Officer for Defendant Taro from January 2013 through his recent retirement from the company.
Erika Vogel-Baylor, the former Vice President for Sales and Marketing for Defendant G&W Labs, Inc. since July 2011.
John Wesolowski, the Senior Vice President of Commercial Operations for Defendant Perrigo since February 2004.

Drugs listed in the complaint as subject to price-fixing and market allocation agreements:

Acetazolamide Tablets
Adapalene Cream
Alclometasone Dipropionate Cream
Alclometasone Dipropionate Ointment
Ammonium Lactate Cream
Ammonium Lactate Lotion
Betamethasone Dipropionate Cream
Betamethasone Dipropionate Lotion
Betamethasone Valerate Cream
Betamethasone Valerate Lotion
Betamethasone Valerate Ointment
Bromocriptine Mesylate Tablets
Calcipotriene Solution
Calcipotriene Betamethasone Dipropionate Ointment
Carbamazepine ER Tablets
Cefpodoxime Proxetil Oral Suspension
Cefpodoxime Proxetil Tablets
Ciclopirox Cream
Ciclopirox Shampoo
Ciclopirox Solution
Clindamycin Phosphate Cream
Clindamycin Phosphate Gel
Clindamycin Phosphate Lotion
Clindamycin Phosphate Solution
Clobetasol Propionate Cream
Clobetasol Propionate Emollient Cream
Clobetasol Propionate Gel
Clobetasol Propionate Ointment
Clobetasol Propionate Solution
Clotrimazole 1% Cream
Clotrimazole Betamethasone Dipropionate Cream
Clotrimazole Betamethasone Dipropionate Lotion
Desonide Cream
Desonide Lotion
Desonide Ointment
Desoximetasone Ointment
Econazole Nitrate Cream
Eplerenone Tablets
Erythromycin Base/Ethyl Alcohol Solution
Ethambutol HCL Tablets
Fluocinolone Acetonide Cream
Fluocinolone Acetonide Ointment
Fluocinonide .1% Cream
Fluocinonide Gel
Fluocinonide Ointment
Fluocinonide Solution
Fluticasone Propionate Lotion
Griseofulvin Microsize Tablets
Halobetasol Propionate Cream
Halobetasol Propionate Ointment
Hydrocortisone Acetate Suppositories
Hydrocortisone Valerate Cream
Imiquimod Cream
Ketoconazole Cream
Latanoprost Drops
Lidocaine Ointment
Methazolamide Tablets
Methylphenidate HCL Tablets
Methylphenidate HCL ER Tablets
Metronidazole Cream
Metronidazole .75% Gel
Metronidazole .1% Gel
Metronidazole Lotion
Mometasone Furoate Cream
Mometasone Furoate Ointment
Mometasone Furoate Solution
Nafcillin Sodium Injectable Vials
Nystatin Ointment
Nystatin Triamcinolone Cream
Nystatin Triamcinolone Ointment
Oxacillin Sodium Injectable Vials
Phenytoin Sodium ER Capsules
Pioglitazone HCL Metformin HCL Tablets
Prochlorperazine Maleate Suppositories
Promethazine HCL Suppositories
Tacrolimus Ointment
Terconazole Cream
Triamcinolone Acetonide Cream
Triamcinolone Acetonide Ointment
Triamcinolone Acetonide Paste

Alaska Attorney General Kevin G. Clarkson joined the attorneys general of Alabama, 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, Missouri, 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.

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Department Media Contacts: Communications Director Patty Sullivan at patty.sullivan@alaska.gov or (907) 269-6368. Information Officer Sam Curtis at sam.curtis@alaska.gov or (907) 269-6269.