Teligent Urged to Face Price-Fixing Claims Outside Bankruptcy

Generic drugmaker Teligent Inc. must continue to defend its role in an alleged price-fixing conspiracy in federal district court despite the company’s bankruptcy filing, a group of labor unions, private insurers, and welfare benefit funds said.

The group, a plaintiff in the five-year-old multidistrict litigation, on Wednesday asked the U.S. Bankruptcy Court for the District of Delaware to lift the automatic stay that attached when Teligent filed Chapter 11 last month. The stay, a function of bankruptcy law, automatically blocks lawsuits and other creditor actions to collect from a bankrupt debtor.

Teligent is one of more than 35 generic drugmakers ...