- On Friday, May 31st Heritage Pharma and the Department of Justice (DOJ) released a settlement regarding the charge that Heritage had price fixed Glyburide.
- Specifically: Heritage Pharmaceuticals Agreed to Pay More than $7 Million in Criminal Penalty and Civil Damages and to Cooperate with Ongoing Parallel Investigations in the Generics Industry.
- Heritage has turned states evidence and agreed to cooperate with the DOJ in exchange for a deferred prosecution agreement on the felony charges.
- Court documents previously revealed that Heritage had more contact with LCI then any other generics company.
What's New?
According to a one-count felony charge filed yesterday in the United States District Court for the Eastern District of Pennsylvania in Philadelphia, from about April 2014 until at least December 2015, Heritage participated in a criminal antitrust conspiracy with other companies and individuals engaged in the production and sale of generic pharmaceuticals, a purpose of which was to fix prices, rig bids, and allocate customers for glyburide, a medicine used to treat diabetes. This charge is the third in the Department of Justice’s Antitrust Division’s ongoing investigation; Heritage’s former CEO and its former president were previously charged.
The Antitrust Division also announced a deferred prosecution agreement resolving the charge, under which Heritage admits that it conspired to fix prices, rig bids, and allocate customers for glyburide. Under the agreement’s terms, Heritage will pay a $225,000 criminal penalty and cooperate fully with the ongoing criminal investigation. The United States will defer prosecuting Heritage for a period of three years to allow the company to comply with the agreement’s terms. The agreement will not be final until accepted by the court. (LINK)
