Swiss pharmaceutical company Sandoz has agreed to a $275 million settlement to resolve allegations that it participated in an illegal drug price-fixing conspiracy. The lawsuit, filed by U.S. consumers, including the City of Providence, Rhode Island, and a New York City police employee benefits plan, accused Sandoz of coordinating with other industry competitors to inflate drug prices.
On Friday, U.S. District Judge Cynthia Rufe of the Eastern District of Pennsylvania was asked to approve the settlement. The case is part of ongoing litigation involving several other drug manufacturers, such as Pfizer, Teva, and Lupin, who have denied any wrongdoing. These companies, however, were not part of the settlement.
Sandoz has denied the charges but agreed to the settlement as part of efforts to resolve the claims and move forward. The company also expressed its intention to cooperate with plaintiffs as they continue to pursue similar claims against other pharmaceutical companies involved in the alleged price-fixing scheme.
The case pertains to drug purchases made between 2009 and 2019, including medications like the antidepressants amitriptyline and clomipramine, as well as clobetasol, a medication used for certain skin conditions. Lawyers representing the plaintiffs estimate that millions of individuals may be eligible for compensation as part of the settlement.
In their court filing, the plaintiffs stated that continued litigation would likely be drawn out with no guarantee of a successful recovery. The attorneys also indicated that they would seek up to $91.6 million in legal fees and $26 million in litigation expenses.
This settlement follows a related $265 million agreement reached by Sandoz in the previous year to resolve similar claims brought by wholesale drug purchasers.
The case is known as In re Generic Pharmaceuticals Pricing Antitrust Litigation, U.S. District Court for the Eastern District of Pennsylvania, No. 2:16-MD-02724.
This case highlights the continuing scrutiny of the pharmaceutical industry for anti-competitive practices, including price-fixing, which has led to significant legal and financial consequences for manufacturers involved in such schemes.
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