Tennessee Secures Multistate Settlement in Principle with Sandoz Over Alleged Generic Drug Price-Fixing

Tennessee Secures Multistate Settlement in Principle with Sandoz Over Alleged Generic Drug Price-Fixing

Tennessee Attorney General Jonathan Skrmetti today joined a bipartisan coalition of 43 states and territories announcing a $400 million settlement in principle with Sandoz Inc. to resolve allegations that the generic drug manufacturer engaged in widespread conspiracies to inflate and manipulate generic drug prices, reduce competition, and restrain trade.

If approved, Sandoz will pay approximately $469 million to resolve claims brought by state attorneys general, including amounts paid pursuant to previous settlements with other states. The agreement also resolves allegations that Sandoz's past and present international affiliates-Novartis AG, Sandoz AG, and Sandoz Group AG-participated in the alleged anticompetitive conduct and fraudulently transferred assets to avoid liability.

In addition to the monetary settlement, Sandoz has agreed to implement significant internal reforms designed to strengthen compliance with antitrust laws and promote fair competition. The settlement remains contingent upon obtaining signatures from all necessary participating states and territories as the coalition prepares for a trial currently anticipated in 2027.

In the same litigation the coalition has also secured settlements with Glenmark, Lannett, Bausch, Apotex, and Heritage totaling approximately $96.5 million.

"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."

The multistate litigation, led by the Connecticut Attorney General's Office, began in 2016 and alleges that numerous generic drug manufacturers and executives coordinated to fix prices, allocate markets, and suppress competition. The states' cases are supported by years of investigation, including evidence from cooperating witnesses, more than 20 million documents, and millions of phone records. The coalition alleges the companies coordinated through industry meetings, calls, emails, and text messages to increase drug prices at the expense of consumers.

Attorney General Skrmetti joins the 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 in securing this settlement in principle.