$17.85M Settlement & Lawsuit Target Generic Drug Price Fixing

MADISON, Wis. – A broad coalition of 48 states and territories, led in part by Wisconsin Attorney General Josh Kaul, has secured settlements totaling $17.85 million with Lannett Company, Inc. And Bausch Health US, LLC and Bausch Health Americas, Inc. These settlements resolve allegations of a long-running conspiracy to artificially inflate and manipulate prices for numerous generic prescription drugs, reducing competition and restraining trade.

Expanding Antitrust Enforcement

The agreements with Lannett and Bausch follow earlier settlements with Apotex and Heritage, bringing the total recovered in these cases to $49.1 million. As part of the settlements, both Lannett and Bausch have committed to cooperating with ongoing multistate litigation involving 30 corporate defendants and 25 individual executives. They have also agreed to implement internal reforms designed to ensure fair competition and compliance with antitrust laws.

Did You Know? The investigations leading to these settlements are based on evidence from cooperating witnesses, a database of over 20 million documents, and phone records detailing contact information for over 600 individuals in the generics industry.

New Lawsuit Filed Against Novartis

In a separate action announced today, Wisconsin and 41 other states and territories filed a new lawsuit against Novartis AG and its subsidiaries, Sandoz Group AG and Sandoz AG. The lawsuit alleges a systemic effort to conspire with other generic manufacturers to fix prices, allocate markets, and rig bids for 31 different generic drugs. The complaint also alleges that Novartis attempted to shield itself from liability in previous antitrust cases by fraudulently transferring assets from Sandoz and spinning off Sandoz Inc.

Attorney General Kaul emphasized the importance of antitrust enforcement, stating, “Strong enforcement of antitrust laws helps with affordability. Consumers should pay prices that result from fair competition.”

Ongoing Litigation and Cooperation

These settlements and the new lawsuit are the result of a series of antitrust cases initiated as early as 2016. Initial complaints targeted Heritage Pharmaceuticals and 17 other companies, along with two individual defendants and 15 generic drugs. Subsequent complaints involved Teva Pharmaceuticals and 19 other manufacturers, naming 16 individuals, and a third complaint focused on 80 topical generic drugs, involving 26 companies and 10 individuals. To date, seven pharmaceutical executives have entered into settlement agreements and are cooperating with investigators.

Expert Insight: The scale of this multi-state effort demonstrates a coordinated approach to addressing potentially illegal practices within the pharmaceutical industry, signaling a commitment to protecting consumers from inflated drug costs.

Frequently Asked Questions

Who is eligible for compensation?

Individuals who purchased a generic prescription drug manufactured by either Lannett or Bausch between May 2009 and December 2019 may be eligible for compensation.

How can I determine if I am eligible for compensation?

You can determine your eligibility by calling 1-866-290-0182 (Toll-Free), emailing [email protected], or visiting www.AGGenericDrugs.com.

What is the potential outcome of the lawsuit against Novartis?

If successful, the lawsuit against Novartis could result in further financial penalties and require changes to their business practices. This proves also possible that the litigation could expand to include additional companies and individuals.

As these cases progress, will increased scrutiny of the generic drug market lead to greater price transparency and affordability for consumers?