Generic drug makers were already staring down price-fixing probes and government allegations of collusion. Now, Kroger and other grocery chains are getting involved, suing Mylan, Teva, Endo and many other companies for an “overarching conspiracy” to artificially inflate prices on certain drugs.
The plaintiffs, which all have pharmacy operations, allege in a 241-page lawsuit (PDF) filed last week that the drug companies met at industry meetings, communicated digitally and more to reach collusive agreements, raise prices and divide up the market to help one another.
Many of the companies cited have had recent encounters with antitrust suits, with various outcomes. The drugmakers are involved in the production of life-saving medications including treatments for cancer, allergies, and diabetes, among other illnesses.
The suit cites pricing on 30 drugs but said others could be added after discovery. In pointing to large price hikes on certain products by multiple companies—at around the same time—the grocers say the pricing dynamics are “so unusual and extraordinary as to demonstrate the existence of a conspiracy.”
Teva declined to comment on the lawsuit and Endo said it doesn’t comment on pending litigation.
“That said, Endo is committed to providing top-quality products that improve patients’ lives, and in doing so, we take our legal obligations—including those relating to product pricing—very seriously,” an Endo spokesperson added. “As such, we plan to vigorously defend the company against these claims.”
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Massachusetts AG Sues Insulin Makers and PBMs Over Alleged Price-Fixing Scheme
Jan 14, 2025 by
CPI
Apple and Amazon Avoid Mass Lawsuit in UK Over Alleged Collusion
Jan 14, 2025 by
CPI
Top Agent Network Drops Antitrust Suit Against National Association of Realtors
Jan 14, 2025 by
CPI
Weil, Gotshal & Manges Strengthens Antitrust Practice with New Partner
Jan 14, 2025 by
CPI
Russian Court Imposes Hefty Fine on Google for Non-Compliance with Content Removal Orders
Jan 14, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – CRESSE Insights
Dec 19, 2024 by
CPI
Effective Interoperability in Mobile Ecosystems: EU Competition Law Versus Regulation
Dec 19, 2024 by
Giuseppe Colangelo
The Use of Empirical Evidence in Antitrust: Trends, Challenges, and a Path Forward
Dec 19, 2024 by
Eliana Garces
Some Empirical Evidence on the Role of Presumptions and Evidentiary Standards on Antitrust (Under)Enforcement: Is the EC’s New Communication on Art.102 in the Right Direction?
Dec 19, 2024 by
Yannis Katsoulacos
The EC’s Draft Guidelines on the Application of Article 102 TFEU: An Economic Perspective
Dec 19, 2024 by
Benoit Durand