Sandoz US subsidiaries resolve generic drug antitrust class action litigation with direct purchaser class plaintiffs

Sandoz US subsidiaries have resolved a class action lawsuit brought by direct purchaser plaintiffs against them for alleged anticompetitive practices related to generic drugs. The settlement is valued at USD 265 million and is subject to approval by the Court in Basel, Switzerland.

The litigation began in 2013 and involved allegations that Sandoz US subsidiaries engaged in anti-competitive behavior by entering into agreements with other generic drug manufacturers to fix prices and limit competition in the market. The direct purchaser plaintiffs, who were primarily pharmaceutical wholesalers and retailers, claimed that these practices resulted in higher prices for consumers and reduced access to affordable generic drugs.

Under the terms of the settlement, Sandoz US subsidiaries will pay USD 265 million to the class plaintiffs, which will be used to compensate them for their losses. The settlement also includes provisions for ongoing monitoring and reporting by Sandoz US subsidiaries to ensure compliance with antitrust laws.

The resolution of this litigation is a significant victory for consumers and direct purchasers who have been impacted by anti-competitive practices in the generic drug market. It sends a clear message that such behavior will not be tolerated and that companies must act in the best interests of their customers and the public at large.