Pa., N.J. join settlement with generic drug firms accused of price-fixing. Consumers may be eligible for refunds.

A coalition of state attorneys general, including those in Pennsylvania and New Jersey, has reached agreements with two prescription drug manufacturers settling claims that they participated in an industrywide scheme to inflate prices and restrain competition.

Generic drugmakers Heritage Pharmaceuticals Inc. and Apotex Corp. will pay a combined $49.1 million as part of the agreements with 50 states and territories, officials said. Consumers may be eligible for refunds if they bought certain drugs between 2010 and 2018, according to the office of New Jersey Attorney General Matthew J. Platkin.

The companies have made internal reforms and will continue to cooperate with the states’ lawsuits against dozens of corporate defendants and individual executives, officials said. The companies’ representatives didn’t immediately respond to requests for comment.

The lawsuits, first filed in 2016 by Connecticut, allege that manufacturers “conspired to fix prices and allocate markets” for hundreds of generic drugs, ranging from medications that treat type 2 diabetes to topical creams for skin infections. The states say the conspiracy violated federal and state antitrust and consumer protection laws.

“Generic versions of prescription drugs are supposed to be more affordable, while offering the same health benefits to those who need them,” Pennsylvania Attorney General Michelle Henry said in a statement Monday announcing the settlement agreements. “These greedy companies harmed Pennsylvanians by intentionally inflating prices and reducing competition.”

The settlement with East Brunswick, N.J.-based Heritage comes after two former company executives — including former CEO Jeffrey A. Glazer — pleaded guilty to federal price fixing charges in 2017. The former executives also agreed to pay civil penalties and have been cooperating with the states’ investigation.

Consumers can determine whether they’re eligible for compensation by visiting www.AGGenericDrugs.com, calling 1-866-290-0182, or emailing [email protected]. Consumers can also choose to opt out of the settlement and file their own lawsuits.

The $10 million agreement with Heritage Pharmaceuticals, now known as Avet Pharmaceuticals, was filed in federal court in Connecticut last week. The agreement, which must be approved by a judge, also resolves claims with Emcure Pharmaceuticals and that company’s CEO, Satish Mehta. The defendants did not admit to any wrongdoing or liability under the settlement agreement.

The majority of the funds — $6 million — is to be paid to eligible consumers and state health agencies. The remaining $4 million is to be set aside to finance the litigation and cover the cost of notifying consumers.

Separately, Canadian drugmaker Apotex has agreed to pay $39.1 million to settle the states’ claims, according to the attorneys general. Officials are awaiting signatures from all states to move forward with that agreement. The states said in court documents that they anticipate allocating 70% of those funds to eligible consumers and agencies and the remainder to the states.

The states’ investigations have led to multiple lawsuits, including one against Teva Pharmaceuticals and some of the biggest generic drugmakers in the U.S.

“The complaints lay out an interconnected web of industry executives where these competitors met during industry dinners, lunches, cocktail parties, and golf outings, frequently communicating through telephone calls, emails, and text messages,” the New Jersey AG’s office said last week.

“Throughout the complaints,” Platkin’s office added, “defendants use terms like ‘fair share,’ ‘playing nice in the sandbox,’ and ‘responsible competitor’ to describe how they unlawfully discouraged competition, raised prices, and enforced an ingrained culture of collusion.”