HEALTH INSURERS WIN $12 MILLION VERDICT IN FEDERAL COURT ACTION AGAINST MYLAN LABORATORIES FOR INFLATING GENERIC DRUG PRICESJun 5, 2005 | www.Newsinferno.com
Mylan Laboratories, Inc. is no stranger to legal problems. On November 29, 2000 the Federal Trade Commission approved a $100 million settlement with Mylan Laboratories (the largest monetary settlement in Commission history) to be paid into a fund for distribution to injured consumers and state agencies. The settlement resolved the Commission's charges that four companies, including Mylan, conspired to deny Mylan's competitors ingredients necessary to manufacture two widely-prescribed anti-anxiety drugs, lorazepam and clorazepate. Mylan also agreed to the entry of an injunction barring similar unlawful conduct in the future.
Now, a federal jury has awarded Mylan to pay four health insurers $12 million for illegally inflating prices in 2001 on the very same generic anti-anxiety medications after having secured exclusive supply agreements for key ingredients of those drugs. The insurers claimed that after securing the exclusive supply agreements, Mylan raised the prices for 100 tablets of the drugs from $16.95 to $64.31.