STAT+: Sandoz to pay $478.5 million to settle price-fixing allegations in long-running battle with states — SkimNews
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- Sandoz agreed to pay $478.5 million to settle allegations by dozens of states and resellers that the company engaged in a widespread conspiracy to artificially inflate and manipulate generic drug prices, reducing competition and harming consumers.
- Under one settlement, Sandoz will pay $400 million over seven years starting in 2027 to resolve all remaining claims by U.S. states across three pending cases.
- Sandoz will make an additional payment of roughly $50 million to states that had already settled earlier in the litigation.
- Another $28.5 million will be paid to resolve all remaining class-action litigation brought by indirect resellers of the medicines.
- Sandoz did not admit to any wrongdoing as part of the settlement agreement.
- The deal is the latest in a long-running legal battle between numerous U.S. states and major players in the generic drug industry accused of fixing prices for their medicines.
- Glenmark Pharmaceuticals, Lannett, Bausch, Apotex, and Heritage Pharmaceuticals had previously settled related lawsuits for nearly $98 million collectively.
Why it matters: With Sandoz's $478.5 million payment, six major generic drug manufacturers have now collectively resolved price-fixing claims totaling over $576 million. The 'no admit, no deny' structure lets Sandoz close the financial chapter without ever having the alleged conspiracy adjudicated, while the states and resellers continue to extract large payouts without a court-tested finding of liability.
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