- Associated Press - Friday, July 7, 2017

GREENBELT, Md. (AP) - A group representing manufacturers of generic prescription drugs has filed a lawsuit against Maryland over the state’s new law intended to stop pharmaceutical price gauging.

The Association for Accessible Medicines filed the lawsuit Thursday in federal court in Maryland. The group calls the law an “unconstitutional overreach” and says it will create instability in the market for generic drugs.

Lawmakers passed the law earlier this year. It empowers the state’s attorney general to take action to stop pharmaceutical price gouging. Manufacturers could face a fine of up to $10,000 per violation. The law is set to take effect in October.

Maryland Attorney General Brian Frosh, who championed the measure, has said the law will give the state a “necessary tool to combat unjustified and extreme prices.”

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