Generic-drug makers colluded to inflate prices, lawsuit says

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Generic-drug makers colluded to inflate prices, lawsuit says
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The lawsuit says the representatives used phrases such as “playing nice in the sandbox” and “fluff pricing” in emails to one another.

About 20 generic-drug manufacturers are accused in a federal lawsuit of conspiring with competitors to divide market share and coordinate price hikes.

“Fluff pricing” refers to the practice of offering an inflated price for a drug to create the appearance of competition. In another email, representatives from three companies talk about coordinating letters in 2014 in response to a congressional investigation into price increases in the generic-drug industry.

The complaint alleges that an official at Teva did this by systematically conspiring with competitors and maintained a ranking system based on their collusive relationships, with +3 assigned to the most collusive and -3 assigned to the least.Last month when the filing of the lawsuit was first announced, a representative of Teva said the company hasn’t engaged in any conduct that would lead to civil or criminal liability.

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