In a legal shake-up, pharmaceutical companies find themselves on the losing end as a court panel rules against their bid to consolidate price-fixing lawsuits in Pennsylvania federal court. The decision allows Connecticut and 45 other states to pursue their antitrust cases independently in Connecticut federal court.
The multidistrict litigation (MDL) in Pennsylvania, encompassing around 40 drug manufacturers accused of conspiring to inflate generic drug prices, now faces a potential disruption with the relocation of the state cases. However, the court panel cited a recent federal law, enacted in late 2022, granting state attorneys general the authority to choose the venue for antitrust actions, on par with the U.S. Justice Department.
The order, issued on Wednesday, marks the latest application of the new law. It emphasizes that the informal cooperation and coordination among the parties and involved courts can persist despite the temporary disruption in the MDL proceedings.
Representatives for major drug companies, including Teva, Sandoz, and Aurobindo Pharma, expressed concerns over the potential chaos caused by the separation of Connecticut and its state coalition. They argued against fighting identical claims in different federal courts before separate judges. Meanwhile, Connecticut Attorney General William Tong welcomed the decision, stating, “We all pay far too much for our prescription drugs, and that won’t change until we restore fair and honest competition throughout the generic drug industry.”
The case, known as In re Generic Pharmaceuticals Pricing Antitrust Litigation, MDL No. 2724, continues to unfold as the drug companies’ efforts to dismiss the claims remain pending. As the legal landscape evolves, the pharmaceutical giants face a challenging road ahead, navigating the complexities of antitrust litigation in various jurisdictions.
