$400M Generic Drug Settlement Sought; Illinois Buyers May Qualify

CHICAGO — Illinois residents who purchased certain generic prescription drugs between May 2009 and December 2019 may qualify for compensation as states pursue settlements over allegations of widespread price-fixing.

Attorney General Kwame Raoul announced Thursday that Illinois and a coalition of 43 states and territories sought court approval of a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc.

The proposed agreement would resolve allegations that the manufacturers conspired to inflate and manipulate generic drug prices, reduce competition and restrain trade. An additional $69 million for previously settling states would bring total payments to approximately $469 million, according to Raoul's office.

The coalition filed its request for preliminary approval in the U.S. District Court for the District of Connecticut. The settlement remains subject to court approval.

"At a time of skyrocketing costs for Americans, generic drug companies colluded with each other to raise prices on needed medications simply to line their own pockets," Raoul said in a news release. "I am pleased with today's settlement with Sandoz and will continue to hold drug manufacturers accountable for their unfair and unlawful practices."

How To Check Eligibility

Raoul encouraged Illinois residents who purchased generic prescription drugs during the May 2009-December 2019 period to check whether their purchases qualify.

Consumers can:

• Visit AGGenericDrugs.com for eligibility information and a list of covered drugs.
• Submit a claim through the claims website.
• Call 866-290-0182.
• Email info@AGGenericDrugs.com.

Eligibility depends on qualifying purchases and the settlement requirements. The announcement did not specify how much an individual consumer could receive.

States Allege Coordinated Price Increases

The settlement is part of a broader series of lawsuits involving nearly 50 generic drug manufacturers and hundreds of medications.

The states allege executives at competing companies negotiated agreements during industry dinners, trade shows and customer conferences, then used phone calls, emails and text messages to coordinate price increases and divide customers.

According to Raoul's office, companies used phrases such as "fair share," "playing fair" and "rules of engagement" to describe arrangements that discouraged competition.

Some coordinated price increases exceeded 1,000 percent, the states allege.

The drugs involved in the broader litigation include antibiotics, antidepressants, contraceptives, cholesterol medications and other treatments used for conditions ranging from infections and diabetes to cancer, epilepsy and HIV.

Sandoz said when announcing the agreement in August that the settlement did not include an admission of wrongdoing, The Wall Street Journal reported.

Cases Against Other Manufacturers Continue

The proposed settlement would also resolve allegations involving Sandoz's past and present international affiliates — Novartis AG, Sandoz AG and Sandoz Group AG — including claims that assets were fraudulently transferred to avoid liability.

Sandoz agreed to internal reforms intended to promote fair competition and compliance with antitrust laws, according to Raoul's office.

The states previously secured settlements with Glenmark, Lannett, Bausch, Apotex and Heritage totaling approximately $96.5 million. Cases against the remaining defendants continue, with a trial anticipated in 2027.