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October 17, 2019

UnitedHealthcare Accuses Generic Drug Makers of Price-Fixing Scheme

On October 11, UnitedHealthcare (UHC) filed a lawsuit federal court in Minnesota, accusing 25 generic drug manufacturers of a scheme to inflate the prices of more than 100 drugs. UHC alleges that anti-competitive behavior is rampant in the generic drug industry, accusing the defendants of coordinating with each other to keep prices high and competition low. According to UHC, the price of certain drugs increased more than 1000%, with an average price increase of 488% occurring between 2013 and 2014. Theoretically, prices should begin to decrease as more generics enter the market; however, some skyrocketed. The complaint further alleges that the defendants knew their behavior was illegal and took calculated steps to destroy evidence and avoid detection.

This is the second price-fixing lawsuit UHC has filed against generic drug manufacturers this year. The other is undergoing pretrial proceedings in the Eastern District of Pennsylvania. More than 45 states have joined in a multi-state lawsuit against nearly two dozen generic drug manufacturers for price-fixing schemes.