DELAWARE- Delaware and a coalition of 43 states and territories are asking a federal court to approve a $400 million settlement with pharmaceutical companies Sandoz Inc. and Fougera Pharmaceuticals Inc. over allegations that they conspired to raise prices on generic prescription drugs and limit competition.
Delaware Attorney General Kathy Jennings announced the move, which could compensate eligible consumers who purchased certain generic medications in the United States between May 2009 and December 2019.
The proposed agreement addresses claims that the drug manufacturers engaged in an extended effort to manipulate prices and restrict competition across numerous generic prescription drugs. The coalition previously announced a settlement in principle on Aug. 3, and all 43 states and territories have since joined the agreement.
A motion seeking preliminary approval has been filed in the U.S. District Court for the District of Connecticut in Hartford. The settlement must receive court approval before it can proceed.
“We expect pharmaceutical companies to conduct business legally and ethically, and we will continue to hold them accountable when they exploit patients for profit,” Jennings said. “I strongly encourage our consumers to check their eligibility and file a claim—if you paid an unfair price, you deserve your money back, full stop.”
Settlement brings total payments to about $469 million.
Under the proposed agreement, combined with previous settlements Sandoz reached with other states, the company will pay approximately $469 million to resolve claims brought by state enforcers.
The agreement also addresses allegations involving Sandoz's past and present international affiliates, Novartis AG, Sandoz AG and Sandoz Group AG. The states alleged that the affiliates participated in the anticompetitive conduct and fraudulently transferred assets to avoid liability.
Sandoz has also agreed to internal reforms intended to promote fair competition and compliance with antitrust laws.
The agreement follows other settlements involving generic drug manufacturers Glenmark, Lannett, Bausch, Apotex and Heritage, along with Heritage's parent company, Emcure. Those agreements totaled $96.5 million.
How to check eligibility for compensation
Consumers who purchased generic prescription drugs during the period covered by the settlement may qualify for compensation. Eligibility depends on the terms of the claims program, so a purchase during that period does not automatically guarantee payment.
- Online
- Claims portal
- Phone: 1-866-290-0182
- Email
