The Justice Department has charged two former New Jersey pharmaceutical company executives with price fixing on generic drugs. Prosecutors named Jeffrey Glazer, former CEO of Heritage Pharmaceuticals, and Jason Malek, a former VP, as defendants in an antitrust lawsuit filed in the United States District Court, Eastern District of Pennsylvania.
In United States v. Jeffrey Glazer, the DOJ filed charges on 12/12/16 which include conspiring to set drug prices and dividing up customers with other companies.
The primary purpose of which was to allocate customers, rig bids, and fix and maintain prices of doxycycline hyclate sold in the United States. The charged combination and conspiracy engaged in by the defendant and co-conspirators was in unreasonable restraint of interstate and foreign trade and commerce in violation of Section 1 of The Sherman Act (15 U.S.C. s. 1).
The criminal complaint describes price fixing for doxycycline from 2013 to 2015 as well as the diabetes drug glyburide beginning in 2014. An agreement among competitors to fix prices is almost always illegal, whether prices are fixed at a minimum, maximum, or within some range. Mr. Glazer and Mr. Malek are also charged with creating dummy companies to illegally transfer more than $9M to themselves. FTC.gov states:
The penalties for violating the Sherman Act can be severe. Although most enforcement actions are civil, the Sherman Act is also a criminal law, and individuals and businesses that violate it may be prosecuted by the Department of Justice. Criminal prosecutions are typically limited to intentional and clear violations such as when competitors fix prices or rig bids. The Sherman Act imposes criminal penalties of up to $100 million for a corporation and $1 million for an individual, along with up to 10 years in prison.
Antitrust experts are experienced with business law and corporate law, as well as the rules and regulations governing antitrust law. These experts are also knowledgeable on state specific antitrust laws that are enforced by state attorneys general. Hiring the most qualified antitrust expert witness is critical in a lawsuit alleging agreements not to compete such as price fixing, bid rigging, and market allocation schemes.