Sandoz will pay $478.5 million to settle allegations from dozens of states and resellers that it engaged in a conspiracy to artificially inflate generic drug prices, harming consumers. The settlement, which includes no admission of wrongdoing, resolves multiple cases and is the latest in a long-running legal battle between states and major players in the generic drug industry.
Sandoz settlement terms
- ▪An additional payment of approximately $50 million will be made to states that had settled earlier
- ▪The settlement includes a $400 million payment to U.S. states over seven years, starting in 2027
- ▪The settlement allocates $28.5 million to resolve class-action litigation brought by indirect resellers of medicines
- ▪As part of the settlement, Sandoz did not admit to any wrongdoing
- ▪Sandoz agreed to pay $478.5 million to settle allegations of a price-fixing conspiracy
Price-fixing allegations
- ▪The alleged price-fixing conspiracy was said to have harmed consumers by reducing competition
- ▪Dozens of states and resellers accused Sandoz of a widespread conspiracy to artificially inflate and manipulate generic drug prices
Generic drug industry litigation
- ▪The settlement is part of a long-running legal battle between numerous states and major players in the generic drug industry
- ▪Glenmark Pharmaceuticals, Lannett, Bausch, Apotex, and Heritage Pharmaceuticals previously settled similar lawsuits for a collective total of nearly $98 million
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