The Core Controversy In a groundbreaking legal development, Aetna has initiated litigation against several pharmaceutical powerhouses, including Pfizer, Novartis, and Teva Pharmaceuticals. The lawsuit centers on allegations of systematic price manipulation and market share conspiracy for generic medications.
Evidence and Timeline Beginning in 2012, these pharmaceutical companies allegedly engaged in covert communications during trade conferences and phone conversations. The complaint suggests a deliberate pattern of evidence destruction when written communications were involved.
Market Manipulation Tactics The pharmaceutical companies reportedly employed sophisticated strategies to maintain artificial price equilibrium:
- Strategic bid manipulation through intentionally high cover bids
- Selective market participation
- Coordinated price maintenance across generic drug categories
Financial Impact and Consumer Cost The repercussions of these actions were significant:
- Four generic drugs experienced price increases exceeding 1,000%
- Insurance companies faced inflated costs despite generic drug formulary inclusion
- Government healthcare programs incurred unnecessary expenses
Legal Precedent and Related Cases The lawsuit builds upon existing legal actions:
- Multiple state coalitions have pursued similar cases
- UnitedHealthcare filed related litigation in 2019
- Humana initiated legal proceedings in 2018
Corporate Communications and Collusion Evidence suggests extensive coordination:
- Over 1,500 documented contacts between Teva executives and competitors
- Coordination during social events including dinners and golf outings
- Internal communications revealing market share agreements
