Puerto Rico v. Beltran et al.,

Puerto Rico filed administrative charges against 34 school bus contractors who provided services to the state Department of Education, alleging that they agreed to fix prices and reduce services to a number of municipalities, as well as limiting geographic markets. the parties paid $170,000 and agreed to injunctive provisions to prevent future violations.

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Maryland et al. v. Perrigo Company, No. 1:04CV01398 (D.D.C. Aug. 17, 2004)

The FTC and states alleged that the companies had entered into a “pay-for-delay” arrangement, whereby Perrigo paid Alpharma to withdraw its generic version from the market for Children’t ibuprofen.According to the complaint, in June 1998, Perrigo and Alpharma signed an agreement allocating to Perrigo the sale of OTC children’s liquid ibuprofen for seven years. In exchange for agreeing not to compete, Alpharma received an up-front payment and a royalty on Perrigo’s sales of children’s liquid ibuprofen. The FTC received $6.25 million to compensate injured consumers. The states received $1.5 million in lieu of civil penalties. the parties were enjoined from future agreements.

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Wal-Mart Stores, Inc. v. Rodriquez, No. 02-2778 (D.P.R.) and Estado Libre Asociado v. Wal-Mart Puerto Rico, Inc., No. 02-2847 (P.R. Ct. First Instance) (Feb. 28, 2003)

Puerto Rico challenged acquisition by Wal-Mart of supermarket chain in Puerto Rico. After the enforcement action was enjoined by the U.S. District Court, Puerto Rico appealed. Twenty states filed an amicus brief supporting Puerto Rico’s ability to challenge the transaction regardless of the actions of the FTC. While the appeal was pending, the parties entered into a settlement under which Wal-Mart would divest four supermarkets.

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Texas et al. v. Penguin Group et al., No. 1:12-cv-03394-DLC (S.D.N.Y, Apr. 30, 2012)

TTexas and Connecticut led 33 state group that filed complaint charging three of the nation’s largest book publishers and Apple Inc. with colluding to fix the sales prices of electronic books. The States undertook a two-year investigation into allegations that the defendants conspired to raise e-book prices. Retailers had long sold e-books through a traditional wholesale distribution model, under which retailers, not publishers, set e-book sales prices. The states alleged that Penguin, Simon & Schuster and Macmillan conspired with other publishers and Apple to artificially raise prices by imposing a distribution model in which the publishers set the prices for bestsellers at $12.99 and $14.99. When Apple prepared to enter the e-book market, the publishers and Apple agreed to adopt an agency distribution model as a mechanism to allow them to fix prices. To enforce their price-fixing scheme, the publishers and Apple relied on contract terms that forced all e-book outlets to sell their products at the same price. Because the publishers agreed to use the same prices, retail price competition was eliminated. According to the States’ enforcement action, the coordinated agreement to fix prices resulted in e-book customers paying more than $100 million in overcharges. The States’ antitrust action seeks injunctive relief, damages for customers who paid artificially inflated prices for e-books and civil penalties. Case was filed in W.D. Tex., transferred to S.D.N.Y. as consolidated case. The States reached settlements with the five publishers, which granted E-book outlets greater freedom to reduce the prices of their E-book titles. Consumers nationwide received a total of $164 million in compensation. After entering into settlement agreement with all the Defendant publishers, DOJ and the states had a nearly 3 week trial against Apple in June 2013, during which numerous witnesses took the stand. On July 10, 2013, a decision was handed down in favor of the U.S. Department of Justice and the states against Apple. Trial of the damages phase is pending. United States et al. v. Apple, Inc., 12-CV-2826 (S.D.N.Y.).

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U.S. and Plaintiff States v. AT&T, No. 11-01560 (D.D.C, 2011)

AT&T sought to acquire T-Mobile. The transaction would have combined two of the only four wireless carriers with nationwide networks. US DOJ and six states filed suite to block the merger. The parties abandoned the merger three months later.

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Texas et al. v. Organon (Remeron), No. 04-5126 (D.N.J. 2004)

Plaintiff states settled with drug maker Organon USA, Inc. and its parent company, Akzo Nobel N.V., resolving antitrust claims involving the antidepressant drug Remeron between June 2001 and October 2004. The states’ complaint alleged that Organon unlawfully extended its monopoly by improperly listing a new “combination therapy” patent with the U.S. Federal Drug Administration. In addition, the complaint alleged that Organon delayed listing the patent with the FDA in another effort to delay the availability of lower-cost generic substitutes. The $26 million settlement resolved claims brought by state attorneys general, as well as a private class action brought on behalf of a class of end payors. Organon also agreed to make timely listings of patents and to submit accurate and truthful information to the FDA.

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Richardson v. Akzo Nobel (In re Vitamins Antitrust Litigation), 1:09-cv-02112-TFH(D.D.C. 2009)

As part of a private class action lawsuit, states, as parens patriae for their citizens, reached a settlement with vitamin manufacturers accused of fixing prices on certain vitamins (The vitamins affected by this alleged price fixing conspiracy are: vitamin A,
astaxanthin, vitamin B1 (thiamin), vitamin B2 (riboflavin), vitamin B3 (niacin), vitamin B4 (choline chloride), vitamin B5 (calpan), vitamin B6, vitamin B9 (folic acid), vitamin B12 (cyanocobalamine pharma), betacarotene, vitamin C, canthaxanthin, vitamin E, and vitamin H (biotin), as well as all blends and forms of these vitamins) sold purchased between 1988 and 2000. This case is related to the case New York et al. v. Hoffmann-LaRoche, Inc.,et al. with different defendants.

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In the Matter of GlaxoSmithKline, PLC (Augmentin)

States alleged that GlaxoSmithKline fraudulently obtained patent protection for Augmentin and then delayed generic entry through sham patent litigation. Through this conduct, GlaxoSmithKline unlawfully maintained its monopoly over Augmentin. A $3.5 million multistate settlement for state proprietary claims was entered into by the participating states and GlaxoSmithKline.

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Maryland v. SmithKline Beecham Corp., No. 2:06-cv-01298-JP (E.D.Pa Mar. 27, 2006)

States sued manufacturer of antitdepressant Paxil, alleging patent misuse and sham litigation designed to prevent generic entry. Parties settled for $14 million.

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FTC and Puerto Rico v. College of Physician-Surgeons of Puerto Rico, No. 971 0011(D.P.R. Oct. 2. 1997)

Puerto Rico College of Physician surgeons sought to act on behalf of all Puerto Rico doctors to raise prices paid by the state for indigent care, and called for a strike which resulted in increaed hospital costs for consumers.

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