Humana has brought a lawsuit against 37 pharmaceutical companies including Novartis, Mylan, and Teva, alleging price fixing of numerous generic drugs.
The conspiracy allegedly increased the profits of the drug makers and others working with them at the expense of consumers, the government, and private payers such as Humana, the lawsuit stated.
The complaint, filed in the US District Court for the Eastern District of Pennsylvania on Friday, August 3, adds to numerous ongoing investigations by the Department of Justice and nearly every state in the country. Humana stated its allegations are “based on personal knowledge” of the price-fixing scheme as well as information made public during the state and federal investigations.
Communications between the drug manufacturers reveal that the companies schemed to obstruct competition and set, increase, or maintain the drugs’ prices, according to the 273-page complaint. It also alleges that the defendants made arrangements not to compete against each other.
The communications allegedly took place at trade association meetings and conferences, at dinners and other private outings, and via phone and text message. The lawsuit names 37 manufacturers, nearly all of which have been subpoenaed by federal prosecutors.