Sandoz Settles $275M US Class Action Lawsuit

Swiss pharmaceutical manufacturer Sandoz Group is set to resolve a $275 million lawsuit by the end of the year, effectively ending its involvement in ongoing legal battles in the United States.

In a statement posted on its website, Sandoz announced that it has reached a settlement agreement with the end payer plaintiffs’ class for a total of $275 million. The payment was expected to be paid in full before the end of the year.

In addition, the company made a provision to settle $265 million in claims filed by opt-out plaintiffs and State Attorneys General.

The agreement involved Sandoz Group’s indirect subsidiaries, Sandoz Inc. and Fougera Pharmaceuticals Inc.

“The settlement payment and the provision will be reflected in Sandoz’s 2024 financial results [and] will not impact the company’s full-year 2024 or mid-term guidance,” the company said.

‘Settlement Not Admission to Wrongdoing’

While the company did not admit to any wrongdoings, it said that the settlement of cases was part of its efforts to resolve and bring an end to its litigation involvements.

The settlement resolved all damage claims from the end payer class, which included consumers, insurers, health and welfare funds, employee benefit plans, and other entities that paid for or reimbursed generic drug purchases.

Under the terms of the settlement, Sandoz will pay the $275 million before December 31, 2024, in exchange for a full release of all claims asserted against the company by the settlement class members.

The settlement remains subject to court approval as required under US law.

Sandoz’s latest settlement followed previously announced settlement agreements with the US Department of Justice in 2020 and 2021, and a separate settlement with the direct purchaser plaintiffs’ class in February 2024.

Remaining claims in the litigation involved allegations of anticompetitive behavior in the US market, with certain US states, territories, and plaintiffs in the indirect reseller class continuing to pursue damages.

In addition to the US generic antitrust litigation, Sandoz Inc., Sandoz Canada Inc., and Fougera Pharmaceuticals have also been named in a class action lawsuit in Ontario, Canada, over alleged price-fixing in the Canadian generic pharmaceutical market.