Antitrust lawsuit accuses generic drug makers of price inflation

Maryland, Delaware, Virginia and 17 other states filed a federal lawsuit Thursday alleging that six generic drug companies inflated and manipulated medication prices.

The state of Connecticut launched an investigation in 2014 that revealed price fixing and conspiracy to reduce competition among the companies, which include Auribindo Pharma USA, Citron Pharma, Heritage Pharmaceuticals, Mayne Pharma, Mylan Pharmaceuticals and Teva Pharmaceuticals USA.

"We have seen huge increases in prices for prescription drugs in the lasts few years," Maryland Attorney General Brian Frosh said. "Our investigation has shown that many of the increases are a result of a conspiracy among competitors to jack up prices."

The lawsuit specifically accuses the companies of inflating the price of doxycycline hyclate delayed release, an antibiotic, and glyburide, a medication for treating oral diabetes. Further investigation may show more drugs were included in the conspiracy.

U.S. generic drug sales were an estimated $74.5 billion in 2015 and nearly 90% of the country's prescriptions are for generic drugs.