Generic/Biosimilar Player Sandoz Settles US Price Fixing Case For $265M

Thursday, US Sandoz, a subsidiary of Sandoz Group AG SDZNY SDZXF, has reached a settlement agreement in the multidistrict litigation titled In re Generic Pharmaceuticals Pricing Antitrust Litigation. 

The agreement, involving a total payment of $265 million, resolves all damages claims by the direct purchaser class, the plaintiffs who directly bought from Sandoz US.

This settlement is devoid of any admission of wrongdoing by Sandoz US.

In addition to the financial component, the settlement terms cover a broad release of claims, spanning the alleged conduct period from 2009 to 2019 and encompassing all medicines pertinent to the direct purchaser class claims. 

However, class members retain the option to opt out, potentially reducing the settlement amount by up to 12%, or $31.8 million, based on aggregate sales of the generic pharmaceutical products in question. 

Furthermore, Sandoz US holds the prerogative to terminate the settlement should opt-outs reach a predetermined threshold.

Once preliminarily approved, class members will be informed and given opportunities to opt out, object, or file claims for settlement payments.

Post-settlement approval, the multidistrict litigation will continue with two remaining plaintiff classes, focusing on indirect and downstream purchases and damages claims.

Sandoz US remains steadfast in its defense against these cases, questioning whether downstream purchasers were genuinely affected by the alleged conduct.

“Sandoz U.S. continues to defend itself vigorously in those cases and has raised a number of defenses, including whether downstream purchasers were actually damaged due to the alleged conduct,” the biosimilar and generics company said.

Photo via Company