Tennessee Attorney General Jonathan Skrmetti announced settlements with Heritage Pharmaceuticals and Apotex, amounting to $49.1 million, to address allegations of price manipulation and anti-competitive behavior concerning various generic drugs. These settlements, pending signatures from all relevant states and territories, aim to resolve claims of illicit price inflation and market control. Both companies have also committed to cooperating in ongoing litigation and implementing reforms to ensure compliance with antitrust laws.
The investigation into these conspiracies began in 2016, led by the Connecticut Attorney General’s Office, which uncovered efforts to inflate drug prices and eliminate competition. Evidence, including documents and phone records, revealed that corporate executives orchestrated these schemes through various social gatherings.
Consumers who purchased generic drugs from these companies between 2010 and 2018 may qualify for compensation. For eligibility information, individuals can call 1-866-290-0182, email info@AGGenericDrugs.com, or visit AGGenericDrugs.com.
Tennessee is part of a multistate effort, joining Connecticut and 47 other states, territories, and regions in this announcement. The Heritage settlement document can be accessed here.
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Obion Resident Convicted of TennCare Fraud
James Fagan of Obion, Tennessee, was convicted of TennCare fraud for selling prescription medications illegally. He must serve three years of probation and repay $215.08, the cost covered by TennCare for his prescriptions. The case was prosecuted by Obion County District Attorney General Colin Johnson, and the OIG continues to work with various partners to combat such fraud. Tennesseans are encouraged to report suspected TennCare fraud through the OIG’s Cash for Tips Program.