Taro Agrees to Pay $205 Million to Resolve Price-Fixing Charges

The Department of Justice announced in tandem a two-count felony charge against Taro Pharmaceuticals U.S.A., Inc. (“Taro”) for engaging in price-fixing conspiracies and a deferred prosecution agreement resolving those same charges.  In the deferred prosecution agreement, Taro admits that between March 2013 and December 2015, it conspired with generic drug manufacturer, Sandoz, Inc., to allocate customers and fix prices on several generic drugs, including clobetasol, desonide ointment, and nystatin triamcinolone cream (each used to treat skin conditions).  Additionally, between May 2013 and December 2015, Taro admits to allocating customers and fixing prices on etodolac (for arthritis) and carbamazepine (for seizures, nerve pain, and bipolar disorder) with an unnamed generic drug manufacturer.  As a penalty, Taro will pay $205 million.  It will also fully cooperate with the DOJ’s ongoing criminal investigation into the generic pharmaceutical industry. 

Taro is the sixth generic pharmaceutical company to be charged and the fifth to admit it fixed prices on generic drugs.  The DOJ has also charged four generic pharmaceutical executives, including former Taro executive, Ara Aprahamian, who, alone among them, has not pled guilty.    

Faruqi & Faruqi represents direct purchasers in a concurrent civil action, In re Generic Pharmaceuticals Pricing Antitrust Litigation, in the Eastern District of Pennsylvania.