How did the generic price-fixing investigation begin?
Connecticut's AG opened the investigation in 2015–16 after receiving subpoenas from Actavis and Teva; 49 states filed a civil action on December 15, 2016; a broader 44-state complaint naming 20 manufacturers followed in 2019 — with cooperation from two former Heritage executives providing key evidence.
The state investigation started in Connecticut. According to Teva's securities filings, in 2015 and 2016 Actavis and Teva USA received subpoenas from the Connecticut Attorney General seeking information on potential state antitrust violations. On December 15, 2016, attorneys general of 49 states, the District of Columbia and Puerto Rico filed a civil action, later amended, that included claims against both companies. In May 2019 a coalition of 44 states filed a much broader second complaint naming Teva and 19 other manufacturers and 15 individuals; it was unsealed in June 2019. A third complaint followed. In parallel, the Justice Department opened criminal and civil investigations, with Teva receiving a civil investigative demand in May 2018. The cooperation of former Heritage executives has been an important source of evidence for the states.