In lawsuit filed Friday in U.S. District Court and announced Sunday night by his office as "60 Minutes" aired a story about the case, CT and a coalition of 43 other states accuse Teva Pharmaceuticals and 19 of the nation's other leading generic drug manufacturers of conspiring to fix prices on more than 100 drugs. The lawsuit, which comes after a multi-year investigation spearheaded by the CT attorney general's office, contends that the companies colluded to raise drug prices.
Investigators said the drugs account for billions of dollars of sales in the United States.
Generic drugs are lower price alternatives to brand name drugs.
Seven Indian drug makers, including Sun Pharmaceutical Industries Ltd and Dr Reddy's Laboratories Ltd, and five of their executives have been named in a USA lawsuit that accuses Israel's Teva Pharmaceutical Industries Ltd of orchestrating a conspiracy to raise medicine prices.
One of the firms accused is Teva Pharmaceuticals, the world's largest producer of generic medicine.
A Sun Pharmaceutical spokesperson said, "We believe the allegations made in these lawsuits are without merit and we will continue to vigorously defend against them".
It alleges that for many years these makers of generic drugs had operated under an agreement not to compete with each other and to settle instead for what these companies referred to as a "fair share" of the market to avoid pushing prices down through competition.
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The Nasdaq added 0.1% to 7,916.94, while the Russell 2000 index of small company stocks picked up 0.2% to 1,572.99. "It's no big deal".
'We all know that prescription drugs can be expensive, ' New Jersey Attorney General Gurbir S Grewal said in a statement.
Between July 2013 and January 2015, Teva allegedly instituted significant prices increases on about 112 generic drugs, including colluding with overlapping competitors on 86 of them, with several seeing price increases of more than 1,000 percent.
To accomplish this goal, the suit says that Teva selected a core group of competitors with which it already had "very profitable collusive relationships", and developed understandings to lead and follow each other's price increases.
Teva said in a statement it has "not engaged in any conduct that would lead to civil or criminal liability".
But by 2012, the suit says that Teva and the other companies made a decision to "take this understanding to the next level". For example, price increases for fluconazole tablets - used to treat fungal infections - ranged from 875-1,570 percent, depending on dosage strength. The first, filed in 2016, named 18 corporate defendants and two individual defendants.
The industry generally has denied any wrongdoing, although two former executives from Heritage Pharmaceuticals, one of the original defendants, have reached settlements with the coalition of states and are cooperating.
The states are seeking damages, civil penalties, and actions from the courts to help overhaul the generic drug market.