New Jersey joins $400 million settlement in principle with Sandoz over alleged generic drug price-fixing
TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport has joined a coalition of 43 states and territories in announcing a $400 million settlement in principle with generic drug manufacturer Sandoz Inc. to resolve allegations the company participated in long-running conspiracies to inflate prescription drug prices and limit competition.
If finalized, the settlement will result in approximately $469 million in total payments by Sandoz to state enforcers, including amounts paid through previous settlements with other states. The agreement also resolves allegations involving Sandoz’s current and former international affiliates — Novartis AG, Sandoz AG and Sandoz Group AG — over their alleged roles in the anticompetitive conduct and the fraudulent transfer of assets to avoid liability.
As part of the agreement in principle, Sandoz has agreed to implement internal reforms designed to ensure fair competition and compliance with antitrust laws. The settlement remains contingent on approval and signatures from all required states and territories.
“Generic drugs are supposed to provide an affordable option for consumers, but collusion by Sandoz and other companies has forced up the prices for these necessary medicines,” said Attorney General Jennifer Davenport. “This agreement in principle with Sandoz is another effort to drive down the cost of prescription drugs, and this is not the end of our work to hold pharmaceutical companies accountable when they fix prices to boost their profits.”
The settlement comes as states prepare for an anticipated trial in 2027 involving allegations of price-fixing in the generic pharmaceutical industry.
According to the attorney general’s office, states have previously secured settlements totaling approximately $96.5 million with Glenmark, Lannett, Bausch, Apotex and Heritage in the same litigation.
New Jersey is part of a coalition pursuing a series of antitrust lawsuits involving generic drug pricing. The cases allege that pharmaceutical companies and executives coordinated pricing through industry meetings, social gatherings, phone calls, emails and text messages to suppress competition and increase drug prices.
The lawsuits stem from multiyear investigations involving cooperating witnesses, more than 20 million documents, and millions of phone records related to sales and pricing personnel in the generic drug industry.
The coalition includes attorneys general from 43 states and territories, along with the District of Columbia, Puerto Rico, the U.S. Virgin Islands and the Northern Mariana Islands.
