Sandoz to pay $265M in generic drug price-fixing settlement

Sandoz settlement overview: 

• Who: Sandoz and subsidiary Fougera Pharmaceuticals agreed to pay $265 million to direct pharmaceutical purchasers. 
• Why: Sandoz was accused of generic drug price-fixing before its 2023 split with Novartis AG, Law360 says.
• Where: The Sandoz generic pharmaceutical lawsuit was in Pennsylvania federal court.

Sandoz and subsidiary Fougera Pharmaceuticals agreed to pay $265 million to direct pharmaceutical purchasers over generic drug price-fixing claims.

The Sandoz generic drug price-fixing settlement resolves claims made in a multidistrict litigation filed in Pennsylvania federal court.

The Sandoz settlement leaves only two Sandoz classes in the multidistrict litigation, both of which involve indirect and downstream generic drug purchases and claims under state law, not federal law.

Sandoz admitted to no wrongdoing in the settlement and said it will continue to “vigorously” defend itself against the remaining claims.

Sandoz indicated it is moving forward with a new commitment to integrity following its split from Novartis AG last year, according to Law360. The settlement will be included in the company’s final 2023 financial results, Sandoz says.

Sandoz settlement includes allows customers to opt out

The Sandoz generic drug settlement includes a wide release of claims made against the company between 2009 and 2019.

Customers have an option to opt out, which could reduce the settlement amount by up to $31.8 million based on the aggregate sales numbers involved in the opt-out. Sandoz also has the option to terminate the settlement if opt-outs rise above a certain threshold, the company says.

The class action settlement must be approved by U.S. District Judge Cynthia M. Rufe before potential class members are notified and given the option to opt out, object or file a claim in the settlement.

Sandoz was one in a group of companies facing more than 90 civil and class action complaints regarding pharmaceutical price fixing that were consolidated in the multidistrict litigation in Pennsylvania court, according to Law360.

Sun Pharmaceuticals and Taro Pharmaceuticals agreed to pay a combined $85 million settlement to resolve claims they worked together to raise and fix the price of certain generic drugs.

Have you purchased generic drugs made by Sandoz? Let us know in the comments.

The Sandoz price-fixing 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.

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