$400 Million Settlement in Principle with Sandoz in Generic Drug Price-Fixing Litigation

Concord, NH - Attorney General John M. Formella announces that New Hampshire, along with a coalition of 43 states and territories, has reached a $400 million settlement in principle with Sandoz Inc. to resolve allegations that the generic drug manufacturer engaged in long-running conspiracies to inflate prices, reduce competition, and restrain trade involving numerous generic prescription drugs.

If finalized and approved by the court, Sandoz will pay approximately $469 million to state attorneys general, including amounts paid through previous settlements with certain states. The settlement also resolves allegations involving Sandoz's current and former international affiliates, Novartis AG, Sandoz AG, and Sandoz Group AG, and requires Sandoz to implement significant compliance and oversight reforms designed to strengthen competition and prevent future antitrust violations.

The settlement remains contingent upon execution by the participating states and territories and final court approval as the multistate litigation continues toward a scheduled 2027 trial against the remaining defendants.

"This settlement reflects our continued commitment to protecting New Hampshire consumers and ensuring that companies compete fairly," said Attorney General Formella. "When businesses unlawfully conspire to manipulate prices and limit competition, consumers ultimately pay the price. Working alongside our state partners, we will continue to hold companies accountable for conduct that violates our antitrust laws."

The states have previously secured settlements in the same litigation with Glenmark Pharmaceuticals, Lannett Company, Inc., Bausch Health Companies Inc., Apotex Corp., and Heritage Pharmaceuticals totaling approximately $96.5 million.

The litigation is the result of a multiyear bipartisan investigation into alleged price-fixing and market-allocation schemes involving numerous generic prescription drugs. The investigation has produced extensive evidence, including more than 20 million documents, millions of phone records, and testimony from multiple cooperating witnesses and former pharmaceutical executives.

According to the states' complaints, competing pharmaceutical companies coordinated pricing and market allocation through repeated communications among sales and pricing executives. Internal communications and other evidence allegedly revealed efforts to discourage competition, allocate market share, and raise prices on generic medications purchased by consumers across the country.

The multistate litigation remains ongoing against additional pharmaceutical manufacturers and individual executives. Specific state allocations are still to be determined.

Joining New Hampshire in the settlement in principle are 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 Jersey, New Mexico, New York, North Carolina, North Dakota, the Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, the U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

The New Hampshire Department of Justice Consumer Protection and Antitrust Bureau investigates unfair, deceptive, or unreasonable practices involving New Hampshire consumers. To file a complaint with the New Hampshire Department of Justice, visit https://www.doj.nh.gov/consumer/complaints.