Turncoat Ranks Grow in the DOJ’s Industry-Wide Generic Drug Price-Fixing Investigation

Generic drug manufacturer Rising Pharmaceuticals Inc. recently entered a Deferred Prosecution Agreement (DPA) to resolve a one-count indictment, announced by the Department of Justice the same day.  Rising was charged with conspiring to fix prices and allocate customers for the drug Benazepril HCTZ.  In exchange for the DPA, Rising has agreed to pay $1.5 million in restitution and another $1.5 million as a monetary penalty.  More importantly, Rising has admitted to fixing prices and allocating customers, and it has agreed to fully cooperate with the DOJ’s investigation into a massive price-fixing scheme involving hundreds of generic drugs and dozens of generic manufacturers.  The DOJ revealed that Rising has already provided, and will continue to provide, substantial cooperation in its investigation, including through the disclosure of criminal antitrust violations involving drugs other than Benazepril HCTZ.

Rising’s indictment was the DOJ’s fourth of the ongoing investigation.  Heritage Pharmaceuticals Inc. was similarly charged and entered into a DPA earlier this year, while two former Heritage executives have pled guilty.  Each is now cooperating with the DOJ’s investigation.