$275M Sandoz Settlement Reaches Resolution in Price-Fixing Lawsuit
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Key Details:
Who: Swiss pharmaceutical company Sandoz Group AG and its subsidiaries, Sandoz Inc. and Fougera Pharmaceuticals, have agreed to a settlement.
Why: The settlement addresses claims that Sandoz participated in a price-fixing scheme within the generic drug industry.
Where: The claims were part of a multidistrict litigation in a federal court in Pennsylvania.
Settlement Details:
Sandoz has agreed to pay $275 million to resolve allegations that it engaged in price-fixing practices affecting the generic drug market. The settlement involves claims from end payors, including consumers, insurers, and benefit funds, who argued they overpaid for generic prescription drugs between 2009 and 2019.
The settlement includes Sandoz Group AG, Sandoz Inc., and Fougera Pharmaceuticals as defendants, with the proposed class of end payors seeking restitution for the alleged overpayments.
Sandoz previously reached a separate $265 million settlement in February with pharmacies and other direct buyers, but it did not admit to any wrongdoing in either case.
In a statement, Sandoz emphasized its commitment to integrity and sound governance, calling the settlement "an encouraging step toward resolving allegations of legacy conduct."
Background and Industry Context:
This settlement is part of ongoing multidistrict litigation that involves claims of generic drug price-fixing by other pharmaceutical companies, including Teva, Actavis, and Mylan.
Other companies, such as Apotex Corp., Breckenridge Pharmaceuticals Inc., and Heritage Pharmaceuticals Inc., have already reached settlement agreements totaling around $45 million with direct purchasers in related cases.
Additionally, Sandoz resolved a criminal investigation into price-fixing with the Department of Justice through agreements in 2020 and 2021.
In April, major companies including Target, Lowe’s, American Airlines, General Motors, Lumen Technologies, and U.S. Foods filed complaints against several pharmaceutical companies, alleging they conspired to fix prices for hundreds of generic drugs.
Do You Qualify for the Settlement?
Consumers, insurers, and benefit funds who believe they overpaid for generic drugs during the relevant period may qualify to benefit from the Sandoz settlement.
Legal Representation:
The plaintiffs are represented by Roberta D. Liebenberg of Fine Kaplan and Black RPC.
Case Information:
The case is 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.
Share Your Thoughts:
Do you think this settlement is sufficient to address the allegations against Sandoz? Let us know in the comments.