Tennessee secured a settlement with a generic drug company over an alleged price-fixing scheme.
A coalition of 43 states and territories announced a $400 million settlement to resolve allegations that Sandoz inflated its generic drug prices, limited competition, and restricted trade.
The settlement also resolves the allegations that Sandoz’s previous and current international affiliates all participated in the alleged conduct.
At the end of the case, if approved by the judge, adding up previous settlements, Sandoz could end up paying $469 million to these states.
The settlement is contingent on whether all these states and territories sign on to the agreement. The coalition of states is planning to bring the company to trial in 2027.
On top of this, Sandoz agreed to enforce internal reforms aimed at helping the company follow antitrust laws and encourage fair competition.
The litigation against Sandoz began in 2016 after the Connecticut Attorney’s Office alleged a generic drug company was coordinating to fix prices and reduce competition. After years of investigation, the states had over 20 million documents and millions of phone records.
The coalition of states and territories accuses the generic drug companies of coordinating their scheme through industry meetings, calls, emails, and text messages.
“Free markets depend on real competition,” said Attorney General Jonathan Skrmetti. “When companies conspire to manipulate prices instead of competing honestly, Tennessee families pay more for medications they rely on. This settlement reflects our commitment to protecting consumers, preserving competition, and holding companies accountable when they violate the law.”
According to Connecticut Attorney General William Tong, Sandoz “ rigged the generic drug market, forcing customers to pay higher prices for critical medication.”
“The company then fraudulently shielded its assets to evade accountability,” he added.
California Attorney General Rob Bonta said this settlement “reflects our commitment to holding bad actors accountable and protecting competition.”
“We will continue to use every available tool to promote a fair marketplace for consumers,” he said.
Besides Tennessee, attorneys general of Alaska, Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, the Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, the U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming were apart of the case.
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Zachery Schmidt is the digital editor of The Star News Network. Email tips to Zachery at [email protected].
