AT&T sues generic drugmakers over alleged price-fixing scheme

By Mike Scarcella

AT&T T and its employee benefit trust have sued dozens of generic drug manufacturers in U.S. federal court, accusing them of orchestrating an industry-wide conspiracy to inflate prices on hundreds of medications.

The lawsuit filed on Tuesday in federal court in Philadelphia alleges that from at least 2009, companies including Teva Pharmaceuticals, Sun Pharma, Sandoz, Glenmark and Amneal schemed to divide up the market and fix prices, leading to “staggering” price increases for critical medications.

AT&T said it has paid billions of dollars in reimbursements for generic medications since the start of the alleged scheme, and would have spent much less "were it not for the massive overcharges resulting from defendants’ illegal conduct.” The lawsuit said the companies violated antitrust law by coordinating on pricing.

AT&T had no immediate comment. Teva Pharmaceuticals, Sun Pharma, Sandoz, Glenmark and Amneal did not immediately respond to requests for comment.

Dallas, Texas-based AT&T employs about 141,000 workers, and the company runs a self-funded health plan that uses corporate or trust assets to pay claims rather than third-party insurance.

The lawsuit adds to a wave of private and state enforcement actions targeting generic drug pricing, which accounts for nearly 90 percent of all U.S. prescriptions. Some other major U.S. employers, including General Motors, Target and American Airlines, have also brought cases.

State attorneys general are pursuing related antitrust allegations against generic drugmakers in federal court in Connecticut. Related class actions from drug wholesalers and others are pending in the Philadelphia federal court.

Government investigations have already led to deferred prosecution agreements and more than $900 million in fines against several defendants.

Switzerland-based Sandoz in February agreed to pay $275 million to resolve claims by U.S. consumers and others who had accused the company of conspiring to fix prices.

AT&T seeks unspecified monetary damages, in addition to disgorgement of allegedly ill-gotten gains.

The case is AT&T Services Inc et al v. Actavis Holdings U.S. Inc et al, U.S. District Court for the Eastern District of Pennsylvania, No. 2:25-cv-06772.

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