By: Richard L. Smith
New Jersey has joined a coalition of 43 states and territories in announcing a proposed $400 million settlement in principle with generic drug manufacturer Sandoz Inc. over allegations the company participated in a long-running scheme to inflate the prices of generic prescription medications.
According to information released by the New Jersey Attorney General’s Office, the agreement would resolve claims that Sandoz conspired with other companies to manipulate drug prices, limit competition, and violate antitrust laws.
If finalized and approved by all participating states and territories, the total settlement value would reach approximately $469 million, including amounts tied to previous agreements.
The proposed settlement also includes reforms requiring Sandoz to strengthen its compliance with antitrust laws and adopt measures aimed at promoting fair competition in the pharmaceutical industry.
Attorney General Jennifer Davenport said the agreement is intended to help protect consumers from artificially inflated prescription drug costs and emphasized that the state will continue pursuing companies accused of fixing drug prices.
The settlement follows earlier agreements in the same litigation with several other generic drug manufacturers totaling approximately $96.5 million.
The multistate lawsuit is part of an ongoing nationwide effort to hold pharmaceutical companies accountable for alleged price-fixing involving dozens of generic medications sold across the United States.
The litigation remains active, with additional proceedings expected to continue.