Sandoz has agreed to pay another group of plaintiffs in the long-running price-fixing litigation it inherited from former parent company Novartis, marking a further step by the company to leave the "legacy" allegations behind.
The company and its subsidiary Fougera Pharmaceuticals agreed to fork over $275 million in a settlement with a class of end-payer plaintiffs in a deal that contains “no admission of wrongdoing," the company said in a press release. The deal resolves all damages claimed for alleged anticompetitive conduct between 2009 and 2019, according to Sandoz.
The end-payer plaintiff group in the multi-district litigation includes certain consumers, insurers, health and welfare funds, employee benefit plans and others that paid for and reimbursed drug sales.
“This settlement underscores Sandoz commitment towards integrity and sound governance, and it is an encouraging step toward resolving allegations of legacy conduct,” the company said in the release.
Sandoz expects the settlement, which is subject to approval from a Pennsylvania federal court, to be finalized before the end of the year. Those involved in the settlement have the right to opt-out, which could reduce the payment amount by up to $45 million.
Now, Sandoz faces remaining price-fixing claims from certain U.S. states, plus individual claimants and a class of indirect reseller plaintiffs.
While the company continues to "vigorously" defend itself against the allegations, it has set up a provision of $265 million based on its current assessment of those remaining claims. That amount may fluctuate as the litigation progresses, the company noted in its release.
Since it officially split off from Novartis last October, Sandoz has been busy battling the price-fixing claims. In February, the company and Fougera reached a $265 million settlement with direct purchasers.