NC joins proposed $400 million generic-drug settlement
The settlement in principle would resolve claims that Sandoz worked with competitors to raise prices and restrict competition.
RALEIGH — North Carolina has joined a proposed $400 million settlement with generic-drug manufacturer Sandoz Inc. over allegations that the company conspired with competitors to raise prices and limit competition.
Attorney General Jeff Jackson and a bipartisan group of 43 other attorneys general announced the settlement in principle Monday.
The agreement would resolve claims involving Sandoz and affiliated companies accused of participating in anticompetitive conduct and transferring assets to avoid liability.
The claims remain allegations, and the announced agreement is a settlement in principle rather than a completed final settlement.
Under the proposed agreement, Sandoz would pay $400 million and change its business practices to comply with federal and state antitrust laws, according to the North Carolina Department of Justice.
“This drug company coordinated with its competitors to make you pay more for prescriptions,” Jackson said. “This is the sixth drug company we’ve held accountable for illegally raising prices, and we’re not done yet.”
The litigation is part of a broader series of cases brought by states against manufacturers of generic prescription drugs.
The first case began in 2016 against Heritage Pharmaceuticals and other defendants and involved 15 generic drugs. Two former Heritage executives later entered settlement agreements and agreed to cooperate with investigators.
A second case was filed in 2019 against Teva Pharmaceuticals and other generic-drug manufacturers.
The third case, filed in 2020, named Sandoz and more than 20 other corporate defendants, along with 10 individual defendants. That case focuses on 80 topical generic drugs that generated billions of dollars in sales in the United States.
The Department of Justice said the states’ cases are based on information from cooperating witnesses, more than 20 million documents and millions of call records involving more than 600 sales and pricing representatives.
The states allege that representatives of competing companies communicated during industry events and through telephone calls, emails and text messages to discourage competition and increase prices. Those allegations have not been established through a final court judgment.
Jackson’s office said North Carolina and other participating states previously reached settlements with five companies totaling $96.5 million.
The Sandoz agreement would add $400 million to that total if the settlement is completed and approved.
The Department of Justice did not specify in its announcement how much of the proposed settlement would be allocated to North Carolina or how the proceeds would be distributed.
Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.
