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A nationwide class action lawsuit has named dozens of the world’s largest generic drug manufacturers, accusing them of a price-fixing scheme to inflate the cost of prescription medications for Canadians.
Lead plaintiff, Kathryn Eaton, wants to represent other Canadian residents across the country who she says were fleeced by the defendant pharmaceutical companies.
“Generic drug purchases in the private sector, which comprise approximately 55 percent of generic drug sales in Canada, are paid for out-of-pocket by individuals, or by businesses and individuals through private drug plans,” points out the class action lawsuit. Generic drugs are not subject to government rate-setting, as opposed to brand-name drug prices that are set and regulated by the Patented Medicine Prices Review Board.
Eaton claims that under this lack of regulatory oversight, generic drug makers were able to artificially control the supply and drive up prices paid by private citizens. The lawsuit alleges an agreement between the pharmaceutical giants to stick to their “fair share” of the market for generic drugs. Dozens of pharmaceutical companies allegedly agreed on whether to sell a generic drug or not and whether to fix or maintain prices on those drugs.
“The conspiracy ensures that the defendants do not compete for market share or on price, thus protecting the defendants’ profits and harming competition,” says Eaton.
Ultimately, the alleged generic drug price-fixing conspiracy enriched the defendant pharmaceutical companies – at the cost of Canadian consumers who paid 30 per cent more for generic drugs than those in other countries.
The class action lawsuit points out that U.S. regulators slapped several pharmaceutical companies with criminal fines after an investigation into price-fixing allegations. Even after several companies faced criminal penalties, investigations are still allegedly ongoing.
“To date, the investigations have revealed an industry-wide conspiracy among the defendant generic drug manufacturers that covers the entire generic drug market,” contends the class action lawsuit. “The conspiracy involves steak dinners, cocktails, rounds of golf, meetings the defendants termed ‘girls’ nights out’ or ‘Women in the Industry,’ and other meetings and communications among the defendants’ executives.”
The proposed class action lawsuit is seeking compensation for all Canadians who paid inflated prices for generic drugs, which is estimated at $2.75 billion, as well as a restoration of lawful competition in the healthcare system.
What do you think of the generic drug price-fixing claims? Do you believe you overpaid for generic drugs? Tell us your thoughts in the comment section below.
The lead plaintiff and proposed Class Members are represented by James C. Orr and Kyle R. Taylor of Affleck Greene McMurtry LLP.
The Generic Drug Price-Fixing Class Action Lawsuit is Eaton v. Teva Canada Limited, et al., Case No. T-607-20, in Toronto Federal Court.
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24 thoughts onGeneric Drug Price-Fixing Conspiracy Alleged in $2.75B Class Action Lawsuit
I’ve been using Generic drugs off & on throughout the years. Anymore, when getting scripts refilled, it seems to be
whatever the pharmacists(s) decide they want to give you. Just my opinion. Please sign me up! Thank you.
I would like to be added to this claim as I have used generic brands for years.
Add me please
Well, for decades we wondered how and why a small bottle of pills cost so darn much
But when your told by a doctor you need it, what choice did we have!
Only to pay what ever the cost was, it was not as if you can question the prices, pay up and take it !
Nice to see that Justice against these nothing but greedy firms put BIG PROFITS BEFORE HUMAN SAFETY AND LIVES!
So please add me to the list of whom was taken advantage of.
Please add me I take a lot of generic drugs and I don’t know if the cost are cheaper or not I’ve been taking them for years because I pay out of pocket please Amy
J’utilise depuis longtemps des médicaments génériques parce que semble-t-il ils sont
moins chers.Je n’ai pas d’assurance privée mais je paie beaucoup de médicaments.
Inscrivez-moi recours puisque au moins il y en a un.
Merci
This is news to me.
Many Canadians like myself just trust pharmacies and health insurance providers to not fleece the flock. I have often thought the whole system should be assigned a class action if they are aware of these practises, pharmacutical companies, who sell to Provincial providers, with Health Canada and Provincial Health washing their hands; Physician Associations and down to theretailer, pressure will encourage change.
Many times consumers dont know if there is /or should be a cheaper price.
Once I filled my drugs at one pharmacy that wasnt my usual one and noticed a sizable difference in pricing.
I know there was a W5 investigation on drug store interactions with pharmacy reps and there were some unethical things brought to light there.
You wonder about some of the development costs .
My son is on one for psoriatic arthritus and the cost was outrageous per dose.
It is something we could not have afforded
The pharmaceutical company and health insurance arranged help with those costs, so why isnt it standard practise to arrange this.?
Pharmaceutical companies always blame the cost on research development.
They should have to report those costs quarterly to authorities for public scrutiny.
In this age of enlightenment,
Making huge profits off peoples ill health is shamefull.
Adequate profit yes…exorbitent no!
A drug I have used for over 10 years increased in price. I asked the pharmacy to fill the generic version. It was only 2$ less than the brand name. The pharmacist said the generic company had been purchased by the brand name company. Sign me up please.
Generic drugs was always first choice by the insurance company
Please include my name in this class action as I have been getting generic drugs.
My generic migraine med is $12 a pill!
My generic migraine med is $12 a pill! Add me pls