Sandoz announced Monday that it has entered into a $450 million settlement with 43 US states and territories to resolve litigation over alleged anti-competitive conduct in the US generic medicines market—a deal the company says will effectively close out all remaining claims brought against it by US federal and state governments stemming from the long-running generic drug pricing investigations.¹

The terms of the settlement

Sandoz Inc. and its subsidiary Fougera Pharmaceuticals Inc.—both indirect subsidiaries of Sandoz Group AG—have entered into a settlement agreement to resolve all remaining claims asserted by US states and territories in three cases pending in the US District Court for the District of Connecticut.

Under the terms of the agreement, Sandoz's US subsidiary will pay a total of $400 million over seven years starting from 2027, with an additional payment of approximately $50 million to states that settled earlier—making a total payment of approximately $450 million. The settlement is conditioned upon approval by all of the litigating states and territories.

Separately, Sandoz US has entered into a settlement agreement with a putative class of indirect reseller plaintiffs in the multidistrict litigation entitled "In re Generic Pharmaceuticals Pricing Antitrust Litigation" in the US District Court for the Eastern District of Pennsylvania. Under the terms of that agreement, Sandoz US will pay $28.5 million in exchange for a full release of all claims asserted against it by the indirect reseller settlement class, which is comprised generally of certain retail pharmacies, clinics, hospitals, and other entities that resold medicines to consumers and other end payers. That settlement is subject to court approval, and class members retain the right to opt out.

Neither settlement contains an admission of wrongdoing by Sandoz US. "These settlements do not affect full-year 2026 guidance or the Sandoz mid-term outlook," the company said.

Closing out a decade of litigation

Following previously announced settlements with the US Department of Justice in 2020 and 2021, the direct purchaser plaintiffs' class in February 2024, and the end purchaser plaintiffs' class in December 2024, today's announcement means Sandoz will have resolved all pending class actions in the US generic antitrust litigation, as well as all claims filed by any US federal or state government against the company.

The only remaining antitrust claims against Sandoz in the US generic antitrust litigation are those brought by individual plaintiffs who opted out of class settlements. Sandoz US continues to defend itself vigorously in those cases and will continue to assess the overall situation, adjusting its previously taken provision as appropriate as litigation progresses.

Background

The litigation traces back to a broad, years-long investigation by US state attorneys general into alleged price fixing and market allocation among generic drug manufacturers. Sandoz and Fougera Pharmaceuticals were first named alongside other generic manufacturers in claims alleging that they coordinated prices and allocated customers for certain medicines in the US market. The multidistrict litigation remains active against non-settling defendants.

The case dates to the period when Sandoz was still part of Novartis, which spun off its generics business and listed it independently on the Swiss stock exchange in October 2023. Sandoz says the settlements underscore the company's commitment to integrity, sound governance, and resolving allegations of legacy conduct.

The resolution arrives at a complicated moment for the generic drug industry more broadly. The Trump administration's phased tariff plan for generic drug imports—with rates escalating significantly through 2029 unless manufacturers commit to domestic reshoring—has placed the sector under fresh commercial pressure. Closing out a decade of antitrust liability gives Sandoz one fewer distraction as it navigates an increasingly complex US market environment.

Sources

1. Sandoz takes further steps to resolve legacy US generic medicine litigation. Sandoz. August 8, 2026. https://www.sandoz.com/sandoz-takes-further-steps-resolve-legacy-us-generic-medicine-litigation/
2. Sandoz agrees $450 mln settlement with 43 US states over antitrust claims. Reuters. August 3, 2026. https://www.reuters.com/legal/litigation/sandoz-agrees-450-mln-settlement-with-43-us-states-over-antitrust-claims-2026-08-03/