20 states filed a lawsuit against Israeli company Teva Pharmaceutical Industries and other drug-making companies in the US and in the world. According to the lawsuit, Teva and other companies would fix prices.
Teva Photo credit: Reuters/ Channel 2 News
Today (Thursday), 20 states filed a lawsuit against Israeli company Teva Pharmaceutical Industries and several other medicinal companies, claiming price fixation that led to an increase in the price of general medications. The medications referred to are doxycycline hyclate, common antibiotics and glyburide, which treats diabetes.
The lawsuit is part of the extensive congressional action aimed to increase supervision of pharmaceutical companies operating in the US. The decision was reached as result of dramatic price spikes in medical products in 2014. According to the prosecutors, the heads of the companies knew that they were participating in illegal activity. “Companies that collude and fix prices for generic drugs in order to pad their profits must be held accountable for the very real harm they inflict on New Yorkers’ ability to pay for life-saving medications,” New York Attorney General Eric Schneiderman said.