The state of California has filed a suit in federal court against units of Teva and Allergan, alleging that the drugmakers obstructed generic competition to Lidoderm transdermal patches.
Civil charges were filed against Watson Laboratories, its former parent Allergan, and Teva, who became the parent company of Watson in August 2016.
According to the suit, the two companies struck a "pay-for-delay" deal with Endo Pharmaceuticals between 2012 and 2014 that monopolized prices for Lidoderm medications, denying consumers the lower prices associated with generic competition.
In an separate case, Endo recently reached a proposed settlement with antitrust regulators after the Federal Trade Commission had alleged Endo paid Impax Laboratories to delay the introduction of a generic version of painkiller Opana ER.
Read TheStreet coverage