Heritage Pharma settles price-fixing allegations for $7M: 6 things to know

Heritage Pharmaceuticals, a generic drugmaker in Eatontown, N.J., agreed to pay a settlement on May 31 to resolve allegations of to fix prices for its diabetes drug glyburide, the U.S. Justice Department said.

Six things to know:

1. The Department of Justice accused Heritage of conspiring with competitors to fix prices, rig bids and allocate customers for glyburide between April 2014 and December 2015.

2. Heritage will pay more than $7 million to resolve the civil and criminal charges related to the price-fixing.

3. The Justice Department is investigating the entire generic drug industry for price fixing, and under the terms of the agreement, Heritage will cooperate with that probe.

4. Jeffrey Glazer and Jason Malek, two former Heritage executives, already pleaded guilty to price-fixing conspiracy charges. Their sentencing hearings are scheduled for September.

5. "American consumers have the right to generic drugs sold at prices set by competition, not collusion," said Assistant Attorney General Makan Delrahim of the Justice Department. "Heritage and its co-conspirators cheated and exploited vulnerable American patients to pad their bottom line."

6. Heritage said that it has revamped its leadership team in the wake of the allegations. "We are pleased to put these issues behind us and focus on Heritage's future," William Marth, global president and CEO of the Heritage Group, North America and Europe, said in a news release.

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