USVI to receive share of $96.5M generic drug settlement

Attorney General Gordon Rhea announced that a Connecticut federal court has given the green light to a compensation scheme involving the U.S. Virgin Islands and 47 other jurisdictions. The plan will channel settlement money from six pharmaceutical manufacturers. Glenmark, Lannett, Bausch, Apotex, Heritage, and Emcure (Heritage's parent), totalling roughly $96.5 million to consumers who paid inflated prices for generic drugs.

Virgin Islanders who bought qualifying medications between May 2009 and December 2019 may be eligible for payouts. Rhea is calling on residents to verify their eligibility and file claims.

"Consumers should not have to bear the burden of artificially inflated prescription drug prices," Rhea said. "These settlements represent an important step toward holding pharmaceutical companies accountable for alleged anticompetitive conduct."

The litigation stems from a coalition investigation that began in 2016. Prosecutors say they uncovered evidence of deliberate price coordination, with company officials using coded phrases such as "fair share," "playing nice in the sandbox," and "responsible competitor" to suppress competition and drive up costs. Seven pharmaceutical executives have provided cooperation to the coalition.

The coalition has filed four separate complaints. The first named Heritage and 17 others, plus two individuals, over 15 drugs. A 2019 complaint targeted Teva Pharmaceuticals and 21 major manufacturers, naming 16 senior executives. A third complaint, scheduled for trial ahead of the others, covers 80 topical medications and lists 26 companies and ten individuals. Earlier this year, the coalition sued Novartis AG, Sandoz Group AG, and Sandoz AG, alleging unlawful conduct and fraudulent asset transfers.

To check eligibility, residents can visit www.aggenericdrugs.com/English/Drug-List (with Spanish and French options available), call 1-866-290-0182 toll-free, or email [email protected].