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Sandoz to pay $400 million in 43-state settlement over alleged generic drug price-fixing

A coalition led by Connecticut Attorney General William Tong asked a federal court in Hartford to approve the deal, which the states say resolves claims that Sandoz conspired to inflate generic drug prices. Connecticut's share is $5.1 million.

Generic drug makers Sandoz Inc. and Fougera Pharmaceuticals Inc. have agreed to pay $400 million to settle allegations by 43 states and territories that they took part in a long-running conspiracy to inflate prices and limit competition for numerous generic prescription drugs, Connecticut Attorney General William Tong said Thursday.

Tong's office, which leads the coalition, said a motion seeking preliminary approval of the settlement was to be filed Thursday in U.S. District Court in Hartford. The states announced a settlement in principle Aug. 3. Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont are among the participants.

Combined with earlier settlements Sandoz reached with other states, the company will pay about $469 million to resolve claims brought by state enforcers, according to the attorney general's office. The agreement also resolves allegations that Sandoz's past and present international affiliates, Novartis AG, Sandoz AG and Sandoz Group AG, took part in the alleged conduct and fraudulently transferred assets to avoid liability. The office said Sandoz also agreed to internal reforms intended to ensure compliance with antitrust laws.

Connecticut's share of the settlement is $5.1 million, the office said.

People who bought certain generic prescription drugs in the United States between May 2009 and December 2019 may be eligible for compensation, according to the office, which directed consumers to AGGenericDrugs.com or 1-866-290-0182.

The states have filed a series of antitrust cases against generic drug makers and executives since 2016. In their complaints, the states allege that competing executives coordinated at industry dinners, lunches, cocktail parties and golf outings and through phone calls and text messages, using phrases such as "fair share" and "playing nice in the sandbox."

The first trial, on a complaint covering 80 topical generic drugs and naming 26 companies and 10 people as defendants, is scheduled for February 2027 in Hartford. The states previously reached settlements with Glenmark, Lannett, Bausch, Apotex, Heritage and Heritage's parent company, Emcure, totaling $96.5 million, the office said.

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