Generic-drug firms seek gag order

In filing, they complain of ‘media blitz’ in price-fixing case

More than a dozen generic-drug manufacturers accused of raising prices on U.S. consumers in a pricefixing case are asking a federal court in Philadelphia to impose a gag order on investigators.

The companies, in a motion filed Tuesday, cited a Dec. 9 Washington Post story about the expansion of the multistate civil inquiry to more than 16 companies and 300 drugs.

They also cited a news conference this week by the attorneys general from Connecticut and Louisiana, which they contended was part of a subsequent “media blitz” even though it received scant attention.

“Certain plaintiffs continue to appear far more interested in litigating their claims in the media rather than before this court,” the companies said in their request that Judge Cynthia Rufe tell all parties in the case to refrain from speaking outside court.

The move to block public comment highlights the extreme stakes and sensitivity for the companies accused of illegal conduct.

The companies are accused of overbilling as part of price-fixing schemes expanding well into the billions of dollars, and some companies could be on the hook for big damages if the case reaches trial.

The companies allege that Connecticut prosecutors, who are spearheading the 47-state case against the manufacturers, are stepping up public statements in a bid to win settlements.

A spokesman for Connecticut Attorney General George Jepsen said the state plans to oppose the gag order request.

“We believe the motion is without merit and further that, as public officials, state attorneys general have a duty to inform their constituents on matters of public concern,” said spokesman Jaclyn Severance.

The disclosure in The

Washington Post of the scope of the case triggered a round of condemnations from public officials and advocacy groups. Sen. Elizabeth Warren, D-Mass., introduced a bill this week that would give the federal government authority to step in and manufacture generic drugs in certain circumstances.

Calls Wednesday to two of the biggest generic manufacturers named in the case, Teva and Mylan, were not immediately returned.

The motion filed by the companies argued that statements to The Washington

Post by one investigator in particular, Joseph Nielsen, the Connecticut assistant attorney general leading the case, diverged from the allegations made in court.

“This included: revealing the number of companies and drugs at issue in the investigation, publicizing the states’ purported conclusions about defendants’ pricing patterns, and providing details about the alleged harm and impact that the states believe to have occurred,” the manufacturers said.

The companies noted the broad media attention given to The Washington Post story, calling it a “headline-worthy piece of information repeated by other news sources.”

The Washington Post report earlier this month detailed allegations about a culture of anti-competitive behavior in the generic drug industry, which is dominated by companies with offices in New Jersey and Pennsylvania. The states’ lawsuit said companies worked together to divide up markets for certain drugs, rigged bids submitted to wholesalers and pharmacy chains, and conspired to keep prices high.