Sandoz Agrees to $275 Million Settlement in Generic Drug Price-Fixing Case

Swiss pharmaceutical company Sandoz Group AG and its subsidiaries Sandoz Inc. and Fougera Pharmaceuticals have agreed to pay $275 million to settle claims they participated in a price-fixing scheme in the generic drug industry.

Sandoz Settlement Overview

Who: Sandoz Group AG, Sandoz Inc., and Fougera Pharmaceuticals.

Why: The settlement resolves allegations that Sandoz engaged in a price-fixing scheme that led consumers, insurers, and benefit funds to overpay for generic prescription drugs.

Where: The claims were part of a multidistrict litigation in a Pennsylvania federal court.

Details of the Settlement

The settlement benefits a proposed class of end payors, including consumers, insurers, and benefit funds, who alleged they were forced to pay inflated prices for generic drugs between 2009 and 2019.

Sandoz previously reached a $265 million settlement in February with pharmacies and direct purchasers but did not admit to any wrongdoing in either case.

“This settlement underscores Sandoz's commitment towards integrity and sound governance, and it is an encouraging step toward resolving allegations of legacy conduct,” the company stated.

Other Generic Drug Companies Facing Litigation

The multidistrict litigation also involves other pharmaceutical companies, including:

• Teva
• Actavis
• Mylan
• Apotex Corp., Breckenridge Pharmaceuticals Inc., and Heritage Pharmaceuticals Inc. (which have already reached settlements totaling around $45 million).

Sandoz also previously reached settlements with the Department of Justice (DOJ) in 2020 and 2021 to resolve a criminal probe into the generic drug industry.

Case Information

The plaintiffs are represented by Roberta D. Liebenberg of Fine Kaplan and Black RPC.

The Sandoz settlement is part of the case In re: Generic Pharmaceuticals Pricing Antitrust Litigation, Case No. 2:16-md-02724, in the U.S. District Court for the Eastern District of Pennsylvania.