Arizona Attorney General Mark Brnovich filed an antitrust lawsuit along with 50 other attorneys general Wednesday against Taro Pharmaceuticals, Perrigo New York, Fougera Pharmaceuticals – now Sandoz – and 23 more of the nation’s largest generic drug manufacturers alleging a broad conspiracy to artificially inflate and manipulate prices and reduce competition for about 80 different generic dermatology drugs.

The federal lawsuit also names 10 senior executive defendants who were responsible for sales, marketing, pricing, and operations. This is the third complaint filed by Mr. Brnovich in conjunction with other state attorneys general regarding collusion among generic drug manufacturers and their executives.

The topical drugs at the center of the complaint include creams, gels, lotions, ointments, shampoos, and solutions used to treat a variety of skin conditions, pain, and allergies. These medications account for billions of dollars of sales in the United States, according to a release.

Through alleged collusion, the defendants increased prices affecting the health insurance market, taxpayer-funded programs like Medicare and Medicaid, and the cost to consumers. In some instances, the cost of a medication doubled, tripled, or even increased by more than 1,000%, the release states. The lawsuit seeks injunctive relief, disgorgement of profits, and penalties.

“Countless Arizonans improve their quality of life and treat illnesses and various conditions with generic medications every single day,” Mr. Brnovich stated. "Too many Americans are already paying absurdly high and inflated prices for the medicines they need. This broad coalition of attorneys general are working together to ensure powerful drug manufacturers and their executives are held accountable if collusion and conspiracy have driven up consumer prices even more.”

The complaint describes how the defendants engaged in a broad scheme to raise dermatological generic drug prices and, through the clear understanding in the industry, communicated with competitors through text messages, emails, telephone calls, and at industry events to coordinate increasing drug prices and maintaining the status quo through reduced competition.

Between 2007 and 2014, three generic drug manufacturers, Taro, Perrigo and Fougera sold nearly two-thirds of all generic topical products dispensed in the nation, the release states. The multistate investigation has uncovered comprehensive, direct evidence of unlawful agreements to minimize competition and raise prices on dozens of topical products. The complaint alleges longstanding agreements among manufacturers to ensure a “fair share” of the market for each competitor, and to prevent “price erosion” due to competition.

This is the third complaint filed by Arizona in conjunction with other state attorneys general regarding collusion among generic drug manufacturers and their executives. The first complaint, still pending in the U.S. District Court in the Eastern District of Pennsylvania, was filed in 2017 and now includes 18 corporate defendants, two individual defendants, and 15 generic drugs. The second complaint, also pending in the U.S. District Court in the Eastern District of Pennsylvania, was filed in 2019 against Teva Pharmaceuticals, 19 more of the nation’s largest generic drug manufacturers, 16 individuals, and more than 100 generic drugs.

The lawsuit seeks injunctive relief, disgorgement of profits, and penalties.

Assistant Attorneys General Dana Vogel and Christina Grey of the Consumer Protection and Advocacy Section are handling this case.

Drugs listed in the complaint as subject to price-fixing and market allocation agreements:

Acetazolamide Tablets

Adapalene Cream

Alclometasone Dipropionate Cream

Alclometasone Dipropionate Ointment

Ammonium Lactate Cream

Ammonium Lactate Lotion

Betamethasone Dipropionate Cream

Betamethasone Dipropionate Lotion

Betamethasone Valerate Cream

Betamethasone Valerate Lotion

Betamethasone Valerate Ointment

Bromocriptine Mesylate Tablets

Calcipotriene Solution

Calcipotriene Betamethasone Dipropionate Ointment

Carbamazepine ER Tablets

Cefpodoxime Proxetil Oral Suspension

Cefpodoxime Proxetil Tablets

Ciclopirox Cream

Ciclopirox Shampoo

Ciclopirox Solution

Clindamycin Phosphate Cream

Clindamycin Phosphate Gel

Clindamycin Phosphate Lotion

Clindamycin Phosphate Solution

Clobetasol Propionate Cream

Clobetasol Propionate Emollient Cream

Clobetasol Propionate Gel

Clobetasol Propionate Ointment

Clobetasol Propionate Solution

Clotrimazole 1% Cream

Clotrimazole Betamethasone Dipropionate Cream

Clotrimazole Betamethasone Dipropionate Lotion

Desonide Cream

Desonide Lotion

Desonide Ointment

Desoximetasone Ointment

Econazole Nitrate Cream

Eplerenone Tablets

Erythromycin Base/Ethyl Alcohol Solution

Ethambutol HCL Tablets

Fluocinolone Acetonide Cream

Fluocinolone Acetonide Ointment

Fluocinonide .1% Cream

Fluocinonide Gel

Fluocinonide Ointment

Fluocinonide Solution

Fluticasone Propionate Lotion

Griseofulvin Microsize Tablets

Halobetasol Propionate Cream

Halobetasol Propionate Ointment

Hydrocortisone Acetate Suppositories

Hydrocortisone Valerate Cream

Imiquimod Cream

Ketoconazole Cream

Latanoprost Drops

Lidocaine Ointment

Methazolamide Tablets

Methylphenidate HCL Tablets

Methylphenidate HCL ER Tablets

Metronidazole Cream

Metronidazole .75% Gel

Metronidazole .1% Gel

Metronidazole Lotion

Mometasone Furoate Cream

Mometasone Furoate Ointment

Mometasone Furoate Solution

Nafcillin Sodium Injectable Vials

Nystatin Ointment

Nystatin Triamcinolone Cream

Nystatin Triamcinolone Ointment

Oxacillin Sodium Injectable Vials

Phenytoin Sodium ER Capsules

Pioglitazone HCL Metformin HCL Tablets

Prochlorperazine Maleate Suppositories

Promethazine HCL Suppositories

Tacrolimus Ointment

Terconazole Cream

Triamcinolone Acetonide Cream

Triamcinolone Acetonide Ointment

Triamcinolone Acetonide Paste

Corporate Defendants

Sandoz, Inc.

Actavis Holdco U.S., Inc.

Actavis Elizabeth LLC

Actavis Pharma, Inc.

Amneal Pharmaceuticals, Inc.

Amneal Pharmaceuticals, LLC

Aurobindo Pharma USA, Inc.

Bausch Health Americas, Inc.

Bausch Health, US LLC

Fougera Pharmaceuticals, Inc.

G&W Laboratories, Inc.

Glenmark Pharmaceuticals Inc., USA

Greenstone LLC

Lannett Company, Inc.

Lupin Pharmaceuticals, Inc.

Mallinckrodt Inc.

Mallinckrodt plc

Mallinckrodt LLC

Mylan Inc.

Mylan Pharmaceuticals Inc.

Perrigo New York, Inc.

Pfizer, Inc.

Sun Pharmaceutical Industries, Inc.

Taro Pharmaceuticals USA, Inc.

Teligent, Inc.

Wockhardt USA, LLC

 Individual Defendants

Ara Aprahamian, Vice President of Sales and Marketing at Defendant Taro Pharmaceuticals U.S.A, Inc.

Mitchell Blashinsky, Vice President of Marketing for Generics at Defendant Taro Pharmaceuticals USA, Inc. from January 2007 through May 2012, and Vice President of Sales and Marketing at Defendant Glenmark Pharmaceuticals Inc., USA from June 2012 through March 2014.

Douglas Boothe, the Chief Executive Officer of Defendant Actavis from August 2008 through December 2012 and the Executive Vice President and General Manager of Defendant Perrigo New York, Inc. from January 2013 through July 2016.

James Grauso, the former Vice President of Sales and Marketing at Defendant G&W Laboratories from January 2010 through December 2011; the Senior Vice President, Commercial Operations for Defendant Aurobindo from December 2011 through January 2014; and the Executive Vice President, N.A. Commercial Operations at Defendant Glenmark from February 2014 to the present.

Walt Kaczmarek, the Senior Director, National Accounts, Vice President, National Accounts and Senior Vice President, Commercial Operations from November 2004 through November 2012 for Fougera Pharmaceuticals, a division of Nycomed US, Inc. (currently part of Defendant Sandoz, Inc.), and Vice President - General Manager, and President, Multi-Source Pharmaceuticals from November 2013 through August 2016 for Defendant Mallinckrodt.

Armando Kellum, the former Vice President, Contracting and Business Analytics at Sandoz.

Kurt Orlofski, the President and Chief Executive Officer from April 2007 through August 2009 for Defendant Wockhardt USA, and President of Defendant G&W Labs, Inc. from September 2009 through December 2016.

Mike Perfetto, the Vice President of Sales and Marketing for Defendant Actavis from August 2003 through January 2013, and the Chief Commercial Officer for Defendant Taro from January 2013 through his recent retirement from the company.

Erika Vogel-Baylor, the former Vice President for Sales and Marketing for Defend-ant G&W Labs, Inc. since July 2011.

John Wesolowski, the Senior Vice President of Commercial Operations for Defend-ant Perrigo since February 2004.