$275M Sandoz settlement resolves consumer price-fixing multidistrict litigation

Sandoz settlement overview: 

• Who: Swiss pharmaceutical company Sandoz Group AG and its subsidiaries Sandoz Inc. and Fougera Pharmaceuticals have agreed to pay $275 million to a proposed class of end payor consumers, insurers and benefit funds.
• Why: The settlement ends claims Sandoz and its subsidiaries were part of an alleged price-fixing scheme involving the generic drug industry. 
• Where: The agreement resolves claims that were part of a multidistrict litigation in a Pennsylvania federal court. 

Swiss pharmaceutical company Sandoz has agreed to pay $275 million to end claims it engaged in price-fixing in the generic-drug industry. 

The Sandoz settlement ends claims brought against Sandoz by consumers, insurers and others as part of a multi-district litigation in a Pennsylvania federal court, reports Law360. 

The settlement includes Sandoz Group AG, company subsidiaries Sandoz Inc. and Fougera Pharmaceuticals and a proposed class of end payors in the form of consumers, insurers and benefit funds. 

The end payors argued they overpaid for generic prescription drugs between 2009 and 2019 due to Sandoz alleged price-fixing. 

Sandoz, which previously reached a $265 million deal with pharmacies and other direct buyers in February, did not admit to any wrongdoing by agreeing to the settlement. 

“This settlement underscores Sandoz commitment towards integrity and sound governance, and it is an encouraging step toward resolving allegations of legacy conduct,” the company said in a statement. 

Sandoz agreed to deals with DOJ in 2020, 2021 to end criminal probe into industry

In addition to Sandoz, the ongoing multidistrict litigation involves generic drug price-fixing claims against pharmaceutical companies Teva, Actavis and Mylan, reports Law360.  

Pharmaceutical companies Apotex Corp., Breckenridge Pharmaceuticals Inc. and Heritage Pharmaceuticals Inc., meanwhile, have reportedly already reached settlement deals with direct purchasers in the multidistrict litigation, for a total of around $45 million. 

Sandoz also previously agreed to deals with the Department of Justice in 2020 and 2021 to resolve a criminal probe into the industry. 

Target, Lowe’s, American Airlines, General Motors, Lumen Technologies and U.S. Foods filed a complaint against dozens of pharmaceutical companies in April over claims they engaged in an unlawful conspiracy to fix the price of hundreds of generic drugs. 

Do you qualify to benefit from the Sandoz settlement? Let us know in the comments.

The plaintiffs are represented by Roberta D. Liebenberg of Fine Kaplan and Black RPC. 

The Sandoz settlement 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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