In June 2020, a proposed class action was commenced against more than 50 generic drug manufacturers, alleging that they violated the Competition Act, according to Smart & Biggar, a Canadian intellectual property law firm.
The report alleged that the generic drug manufacturers were involved in the conspiracy to allocate the market, fix prices, and maintain the supply of generic drugs since 2012, claiming damages or compensation of $2.75 billion.
The action was brought on behalf of class members who bought generic drugs in the private sector.
Officials investigated price fixing, bid rigging, and market allocation in the generic pharmaceutical industry. Eventually, certain manufacturers have entered guilty pleas.
Now, the Federal Court approved litigation funding agreement (LFA) in proposed class proceedings against generic drug manufacturers, according to JD Supra, a daily source of legal intelligence on all topics business and personal, distributing news, commentary, and analysis from leading lawyers & law firms.
On September 20, the Federal Court approved the LFA. “The proposed class representative plaintiff entered into an LFA with a litigation funding group, Parabellum, to fund the action,” JD Supra wrote.
“Pursuant to the LFA, Parabellum will fund and be reimbursed for certain costs, including disbursements and adverse cost awards, and would be entitled to a Funding Fee,” it added.
The United States Department of Justice Antitrust Division Spring Update 2021 said Teva, Glenmark, and one executive are awaiting trial, and three other executives have pleaded guilty.
The department also said that five other generic drug companies have admitted to the charged conduct and have collectively agreed to pay over $426 million in criminal penalties for collusion, per the news outlet. The story appeared on JD Supra and Smart & Biggar.