Kevin McCoy

USA TODAY

Six drug companies used steakhouse dinners and girls nights out get-togethers to collude in fixing artificially high prices for generic medications, 20 U.S. states charged Thursday in the latest legal attack on rising drug costs.

The alleged anticompetitive scheme was directed the top-level executives and has harmed U.S. consumers by forcing them to pay higher prices for medications that theoretically should sell at lower costs under free market conditions, the states charged in the civil antitrust lawsuit filed in Connecticut federal court.

State attorneys general disclosed some of the allegations in a redacted court complaint because the investigation is continuing. The new lawsuit dovetails with a felony case in which federal prosecutors on Wednesday charged two former generic drug company executives for alleged roles in a medication price-fixing and bid-rigging scheme.

Both cases focus on the pricing history of the same two drugs: Doxycycline Delayed Release, an antibiotic, and Glyburide, a diabetes medication that helps control blood sugar levels. However, state officials said their investigation has found a broad range of alleged conspiracies that involve numerous other generic drugs and competitors.

Feds charge 2 former drug execs in price fixing probe

"We have evidence of widespread participation in illegal conspiracies across the generic drug industry," Connecticut Attorney General George Jepsen said in a statement announcing the lawsuit. "Ultimately, it was consumers — and, indeed, our healthcare system as a whole — who paid for these actions through artificially high prices for generic drugs."

The antitrust complaint names six generic drug companies: Aurobindo Pharma USA; Citron Pharma; Heritage Pharmaceuticals; Mayne Pharma (USA); Mylan Pharmaceuticals; and Teva Pharmaceuticals. The firms either denied any wrongdoing, declined to comment, or did not immediately respond to messages seeking comment on the allegations.

Prices generally drop when generic drugs enter the U.S. pharmaceutical market and companies compete to offer medications that previously were brand-name drugs sold by one firm holding under patents. However, the complaint charged that prices for some generic drugs in recent years have risen, even skyrocketed, "for no apparent reason."

In response to consumer and government complaints, pharmaceutical companies have sought to explain the increases by citing industry consolidation, elimination of unprofitable drug lines and plant closings, the lawsuit said.

But the legal complaint identified what the states characterized as a more sinister reason: "collusion among generic drug competitors."

Executives of some of the drug companies allegedly discussed and shared upcoming bids, specific generic drug markets, pricing strategies and pricing terms during dinners, cocktail parties, golf outings and other gatherings held in conjunction with multi-day industry and customer conferences, the lawsuit charged.

Smaller groups of drug firm officials allegedly followed up in "industry dinners" and other gatherings. For instance, 13 high-ranking male executives, including CEOs, presidents and senior vice presidents of generic drug firms, met at a Jan. 2014 steakhouse dinner in Bridgewater, N.J., the lawsuit charged.

The dinner gathering was held "at a time when the prices of a number of generic drugs were reportedly soaring," the lawsuit charged. Details of a group email related to the gathering were blacked out of the court filing.

Female sales representatives of generic pharmaceutical companies held separate gatherings referred to as a "girls night out" or a "women in the industry" dinner. Part of a text message allegedly related to one of those dinners in 2014 was also blacked out of the lawsuit.

The state allegations could spark other federal and state lawsuits, and ultimately "upend" the generic pharmaceutical industry, said Michael Carrier, a Rutgers Law School professor with expertise in antitrust cases.

"Generic drugs are supposed to lower prices for consumers. But when generic manufacturers get together to increase prices, divide markets and cover their tracks, the system doesn’t work," said Carrier.

Mylan to pay $465M settlement over EpiPen, cuts earnings outlook

The latest allegations echo amid widening complaints by patients, healthcare professionals, and government officials over similarly rising prices for many brand-name drugs.

Mylan agreed to a $465 million settlement with federal regulators in October amid criticism and questions over EpiPens, a life-saving emergency injection for allergy sufferers. The settlement came after the list price of an EpiPen two-pack rose to approximately $600, up from approximately $100 in 2009.

Former Shkreli firm responsible for 5,000% drug hike sued

Pharmaceutical industry entrepreneur Martin Shkreli separately became a target of national criticism, along with investigations and at least one lawsuit, for his role in a 5000% price hike on a drug used to treat a parasitic illness that afflicts those with AIDS, cancer or other conditions that weaken the immune system.

Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc