Tennessee Attorney General Jonathan Skrmetti, alongside a bipartisan coalition of 43 states and territories, has announced a $400 million settlement in principle with generic drug manufacturer Sandoz Inc. The agreement resolves long-standing allegations that the company engaged in widespread conspiracies to inflate prices, suppress competition, and restrain trade.

Key Details of the Agreement

• Total Financial Resolution: If approved, Sandoz will pay roughly $469 million total to resolve state claims, which includes amounts from previous state settlements.

• Affiliates Included: The deal covers allegations against past and present international affiliates—including Novartis AG, Sandoz AG, and Sandoz Group AG—regarding anticompetitive behavior and fraudulent asset transfers.

• Corporate Reforms: Sandoz must implement strict internal reforms to strengthen compliance with antitrust laws and foster fair market competition.

• Broader Litigation Success: The coalition has also secured separate settlements totaling $96.5 million in the same litigation with Glenmark, Lannett, Bausch, Apotex, and Heritage.

Background on the Multistate Investigation

The litigation, spearheaded by the Connecticut Attorney General’s Office and dating back to 2016, accuses multiple generic drug manufacturers and executives of coordinating via meetings, calls, and texts to fix prices and allocate markets. The states’ case builds on an extensive investigation involving more than 20 million documents and millions of phone records.

“Free markets depend on real competition,” said Attorney General Jonathan Skrmetti. “When companies conspire to manipulate prices instead of competing honestly, Tennessee families pay more for medications they rely on.”

The finalization of the settlement is contingent upon gathering signatures from all participating states and territories as the coalition prepares for a trial anticipated in 2027.