Salem, Oregon – Oregon Attorney General Dan Rayfield has effectively negotiated a $9.25 million settlement against pharmaceutical behemoths AbbVie and Besins Healthcare, therefore achieving a significant legal victory for Oregon. The settlement resolves accusations that by using deceptive legal strategies, the corporations illegally monopolize the market for testosterone replacement gels.
The case focused on the corporations’ use of what AG Rayfield called “sham patent litigation” to postpone the arrival of less expensive, generic testosterone gels. AbbVie and Besins extended their market exclusivity by launching unfounded litigation against potential rivals, therefore maintaining their high product prices. The practice not only hampered competitiveness but also taxed Medicaid programs, insurance companies, and patients financially, all of which had to pay for the inflated expenses.
“These are the sneaky legal tricks that pharmaceutical companies will use to keep drug prices high for as long as they can,” Rayfield said in a news release. “It’s unacceptable and a direct attack on people who are just trying to get by. It’s a violation of trust that should exist between consumers and the companies that provide life-changing medications.”
Read also: Oregon health officials push for new prevention strategies amid alarming syphilis outbreak
With a total value of $6,197,500, most of the settlement consisted in penalties and disgorged profits. Often with extra fines or interest, disgorged profits—that is, money gained by unethical or unlawful means—have to be repaid. This large number emphasizes the degree of the corporations’ misbehavior and their effects on the market.
This case tracks a similar federal lawsuit the Federal Trade Commission (FTC) brought, first obtaining a $448 million disbursement remedy against the same businesses. Later on, though, the U.S. Supreme Court reversed this ruling, declaring that the FTC Act did not authorize remedies for disgorgement. This decision significantly reduced federal authority to recover income lost by unethical pricing policies.
Oregon used its legal systems to hold AbbVie and Besins responsible despite a federal level setback. AG Rayfield emphasized the need of state-level intervention, particularly in times when federal rules are being reduced back-off.
“The state attorneys general have to stand up and fill the hole that is left to protect our consumers.,” Rayfield said.
Read also: Scammers target Klamath County residents again
Oregon Medicaid will get some of the settlement money to assist cover the expenses from acquiring the overpriced testosterone gels. Additional money will help the Oregon Department of Justice’s divisions on consumer protection and antitrust as well as assist with a protection and education fund the department oversees.
AG Rayfield expressed gratitude for the committed staff at the Oregon Department of Justice, especially Senior Assistant Attorney General Brian De Haan and Special Assistant Attorney General Chris Kayser, whose unwavering efforts resulted in the successful ending of the case.
Read also: Oregon among hardest-hit states as IRS downsizes under new federal efficiency plan
This settlement not only marks a triumph for consumer rights and market fairness but also provides a model for other states to follow in opposing monopolistic tactics that can cause rising healthcare prices.
