Attorney General JB McCuskey today announced a $400 million settlement in principle with Sandoz Inc. The action is to resolve allegations that the generic drug manufacturer engaged in widespread, long-running conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs. The agreement to settle the litigation is subject to approval by a bi-partisan coalition of 43 states and territories.
If approved, Sandoz Inc. will pay a total of approximately $469 million to settle the claims brought by the coalition of Attorneys General, including amounts paid pursuant to previous settlements with other states. The settlement will also resolve allegations that Sandoz Inc.’s past and present international affiliates, Novartis AG, Sandoz AG, and Sandoz Group AG, participated in the alleged anticompetitive conduct and fraudulently transferred assets in order to avoid liability.
As part of the settlement in principle, Sandoz has agreed to meaningful injunctive terms including a series of internal reforms to ensure fair competition and compliance with antitrust laws. This settlement is contingent upon obtaining signatures from all necessary states and territories and comes as the States prepare for an anticipated trial in 2027.
“Drug prices in this country are out of control and have been for far too long. This lengthy litigation has revealed the depths of the conspiracy among various companies to keep prices high and limit affordable options, hurting those who need these drugs to survive. It’s wrong and I’m proud of the work of this bipartisan coalition to hold these companies accountable for putting profits over people,” Attorney General McCuskey said.
The States have also secured settlements in the same litigation with Glenmark, Lannett, Bausch, Apotex and Heritage totaling approximately $96.5 million.
Connecticut is leading the bipartisan action against the various drug manufacturers, joined by West Virginia, Alaska, Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, U.S. Virgin Islands, Vermont, Virginia, Washington, Wisconsin, and Wyoming.
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