AT&T Services, a major telecommunications company, has filed a 725-page lawsuit accusing dozens of generic drugmakers of colluding to raise prices for employer-sponsored health plans. The complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that the companies illegally allocated customers and rigged bids for over 200 generic drugs since 2009.
AT&T is seeking to recover costs for its employee benefit plan. The company cited steep price increases as evidence, noting that a 500-pill bottle of doxycycline rose from $20 in October 2013 to $1,849 in April 2014, and a 100-tablet bottle of albuterol sulfate jumped from $11 to $434. AT&T highlighted internal industry emails allegedly discussing price-fixing strategies and claimed the scheme represents a “fair share” conspiracy among the defendants.
The lawsuit reflects ongoing efforts by employers to address rising health care costs, following stricter fiduciary responsibilities under the Consolidated Appropriations Act of 2021. AT&T stated, “There are no market forces that explain the Defendants’ pricing activities other than anticompetitive collusion.” Several drugmakers targeted in the lawsuit had previously admitted to splitting market share in Department of Justice settlements and face a multidistrict class action. Attempts to reach multiple companies for comment were not immediately successful, and the case underscores the increasing scrutiny on the pharmaceutical industry’s pricing practices.
