Federal Judge Allows States’ Antitrust Lawsuit Against 36 Drugmakers to Proceed

A U.S. federal judge has ruled that 36 pharmaceutical companies and executives must face most claims in a sweeping antitrust lawsuit accusing them of price-fixing 80 generic drugs. Chief Judge Michael Shea of the District of Connecticut dismissed arguments that the plaintiffs—45 states, the District of Columbia, and four U.S. territories—waited too long to file their federal and state-level claims.

The case, led by Connecticut, targets major drugmakers including Pfizer, Perrigo, and Sandoz. The states allege that between 2009 and 2016, these companies conspired to inflate prices, restrict competition, and divide customers for a wide range of medications, particularly those treating skin conditions. According to the lawsuit, brand-name products affected include the acne medication Differin, anti-fungal cream Lotrimin AF, and ADHD treatment Ritalin.

In his 130-page decision, Judge Shea stated that the defendants failed to demonstrate that the states were negligent in pursuing the case. He cited evidence suggesting that the drugmakers actively concealed their collusion through misleading pricing practices. “A reasonable juror could find that the defendants’ actions—such as falsely citing production costs and coordinating uncompetitively high bids—were aimed at hiding their alleged conspiracy,” Shea wrote.

The ruling marks a major step forward in one of the largest generic drug price-fixing cases in U.S. history, potentially reshaping the landscape for pharmaceutical antitrust enforcement. While representatives for Pfizer, Perrigo, and Sandoz have not yet commented, Connecticut Attorney General William Tong’s office also declined to respond immediately.

The case, Connecticut et al v. Sandoz Inc et al, No. 20-00802, continues in the U.S. District Court for the District of Connecticut, as states pursue justice for alleged collusion that impacted consumers and healthcare systems nationwide.