Heritage Pharmaceuticals Inc. Will Pay Over $7 Million in Civil Suit Following Allegations of Price Fixing

Heritage Pharmaceuticals Inc., a New Jersey-based company, has been ordered to pay more than $7 million after being charged with conspiring with its competitors to fix prices, rig bids, and allocate customers.

According to the Department of Justice, Heritage Pharmaceuticals Inc. was part of an antitrust conspiracy which involved several other companies and leaders in the pharmaceutical space. This conspiracy took place from 2014 to 2015 and had the shared goal of fixing the prices of a medication that is used to treat diabetes.

In addition to the $7 million that Heritage Pharmaceuticals Inc. will have to pay as part of a civil claim, they will also have to pay a $225,000 criminal penalty and cooperate with a criminal investigation that remains open. The $7 million fee will resolve allegations against the company that fall under the False Claims Act since it allegedly violated the Anti-Kickback Statute.

“Price fixing of generic drugs harms federal health care programs and the beneficiaries those programs serve,” stated Jody Hunt, the Assistant Attorney General of the Department of Justice’s Civil Division. “The Department of Justice will use every tool at its disposal to hold generic drug manufacturers accountable for wrongdoing.”

To learn more about pharmaceutical fraud and similar cases, visit the Jeff Newman Law Whistleblower Help Center and blog!