$17.85M Settlement: States Win Against Drug Companies in Generic Price Fixing Case

A coalition of 48 states and territories, led by Attorney General Nick Brown, has secured $17.85 million in settlements with Lannett Company, Inc. And Bausch Health US, LLC and Bausch Health Americas, Inc. The agreements resolve allegations that the companies conspired to artificially inflate and manipulate prices, reduce competition, and restrain trade in the generic prescription drug market.

Widespread Conspiracy Uncovered

The settlements are part of a broader antitrust enforcement action targeting numerous companies accused of manipulating drug prices. According to the agreements, consumers may have paid more than ten times the appropriate cost for certain medications, including those used to treat infections and cancer. Lannett and Bausch have agreed to cooperate with ongoing litigation against 30 corporate defendants and 25 individual executives.

Did You Know? The states’ investigation has uncovered evidence of coordination among companies through industry events like dinners, “girls nights out,” and golf outings, as well as frequent communication via phone, email, and text message.

Previous Settlements and Ongoing Litigation

These settlements follow earlier agreements with Apotex and Heritage, totaling $49.1 million. The states are preparing for the first trial, anticipated to begin in late 2026 in Connecticut. The cases are supported by evidence including witness testimony, a database of over 60 million documents, and phone records for over 600 industry individuals.

Attorney General Brown stated, “It’s hard to imagine more despicable corporate behavior than conspiring to raise the price of medicine for people who need it.” He affirmed a commitment to holding those responsible accountable and securing restitution for affected consumers and businesses.

Compensation Available for Consumers and Businesses

Washington and Idaho are the only states in the coalition that have also secured restitution for businesses impacted by the alleged conspiracy. Individuals who purchased affected generic drugs between May 2009 and December 2019 may be eligible for compensation. Information and claim submission details are available by calling 1-866-290-0182, emailing [email protected], or visiting www.AGGenericDrugs.com. Businesses in Washington may also be eligible and can find more information at https://www.aggenericdrugs.com/English/CorporateEntities.

Expert Insight: The scale of this multi-state action demonstrates a coordinated effort to address potentially unlawful practices within the pharmaceutical supply chain, signaling a heightened focus on antitrust enforcement in this sector.

New Lawsuit Filed Against Novartis

In a separate action, 42 states and territories have filed a new lawsuit against Novartis and its generic subsidiary Sandoz. The complaint alleges a conspiracy to fix prices, allocate markets, and rig bids for 31 different generic drugs. It further claims that Novartis attempted to shield itself from liability by transferring and draining assets from Sandoz.

Frequently Asked Questions

What types of drugs were affected by the alleged price manipulation?

The settlements and lawsuits involve numerous generic prescription drugs, ranging from antibiotic ointment to cancer treatments, as well as 80 topical generic drugs.

What is the timeframe for potential compensation?

Individuals who purchased affected drugs between May 2009 and December 2019 may be eligible for compensation.

Which states are involved in these legal actions?

The coalition includes Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, U.S. Virgin Islands, Vermont, Virginia, West Virginia, Wisconsin, Wyoming, and Puerto Rico.

As these cases progress, it remains to be seen whether further settlements will be reached or if the cases will proceed to trial, potentially leading to additional consequences for the companies involved.