Sandoz to pay $478.5 million to settle price-fixing allegations
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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