A lawsuit over price fixing by drugmakers is being massively expanded
- 46 state attorneys general are going after generic drugmakers, aiming to file a lawsuit that alleges price fixing of generic drugs.
- In total, the lawsuit would target 18 companies and single out two top executives, including Mylan's president.
- Mylan's stock fell more than 8% on the news.
A lawsuit alleging price-fixing of generic drugs is about to be expanded to include nearly every state in the country, and one company - Mylan - is already feeling the heat.
Forty-six state attorneys general are planning to expand a lawsuit that alleges price fixing of generic drugs. This would expand the lawsuit to 18 companies.
"We allege in this complaint that the defendant companies' collusion was so pervasive that it essentially eliminated competition from the market for these 15 drugs in its entirety," Connecticut Attorney General George Jepsen said in a statement. "Our ongoing investigation continues to uncover additional evidence, and we anticipate bringing more claims involving additional companies and drugs at the appropriate time."
That's up from the 20 state attorneys who sued 6 companies, including Mylan, alleging the generic drugmakers colluded on prices. The drugs in question at the time were a generic antibiotic called doxycycline hyclate and an antidiabetic medication called glyburide.
The states are zeroing in on a man named Rajiv Malik, Mylan's president and executive director, along with Satish Mehta, CEO at Emcure Pharmaceuticals. Mylan's shares are down more than 6% on the news.
