July 7 (Reuters) - Southwest Airlines ( LUV ) has sued a

group of drugmakers in U.S. court for allegedly participating in

a price-fixing conspiracy that caused the airline to overpay for

purchases of hundreds of millions of dollars in medications for

employees.

Southwest ( LUV ) alleged it was overcharged by generic drugmakers

including Sandoz, Teva and Sun starting in May 2009. The

lawsuit, filed in the federal court in Philadelphia and unsealed

on July 3, said the companies violated antitrust law by

coordinating on pricing.

Sandoz, Teva and Sun did not immediately respond to requests

for comment.

Southwest ( LUV ) in a statement said it sued after discovering

evidence of what it called a widespread price-fixing conspiracy

among dozens of generic drug makers.

State attorneys general and other plaintiffs are pursuing

related antitrust allegations against generic drugmakers in

federal court in Connecticut. Related class actions from drug

wholesalers and others are pending in the Philadelphia court.

Generic drugmakers Apotex and Heritage Pharmaceuticals last

year agreed to pay nearly $50 million to settle claims by

Connecticut and other states that accused them of conspiring to

artificially inflate prices.

Switzerland-based Sandoz in February agreed to pay $275

million to resolve claims by U.S. consumers and others who had

accused the company of conspiring to fix prices.

Southwest ( LUV ) paid health claims for its employees and retirees

from its corporate assets and did not otherwise rely on

third-party insurance. The airline's lawsuit said it paid

"massive" unspecified overcharges for generic medications.

The complaint said generic drugmakers were "systematically

and routinely communicating with each other directly about bids,

pricing, and market entries and exits for hundreds of generic

drugs."

Other employers - including General Motors ( GM ), Target ( TGT ) and

American Airlines ( AAL ) - had sued the same defendants last year,

claiming billions of dollars in overcharges.

The case is Southwest Airlines Co ( LUV ) v. Actavis Holdco U.S. Inc

et al, U.S. District Court for the Eastern District of

Pennsylvania, No. 2:25-cv-02951-CMR.

For plaintiffs: Karma Giulianelli and Sundeep Addy of

Bartlit Beck

For defendants: No appearances yet

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