Connecticut Attorney General William Tong led a coalition of 43 states and territories in announcing a $400 million settlement in principle with Sandoz Inc. over an alleged conspiracy to inflate generic drug prices.

If approved, Sandoz will pay approximately $469 million total to state enforcers, including amounts from previous settlements. The settlement also resolves allegations that Novartis AG, Sandoz AG, and Sandoz Group AG participated in the anticompetitive conduct and fraudulently transferred assets to avoid liability.

Sandoz agreed to injunctive terms, including internal reforms to ensure fair competition and compliance with antitrust laws.

Tong said, "Sandoz Inc. rigged the generic drug market, forcing customers to pay higher prices for critical medication. The company then fraudulently shielded its assets to evade accountability. This settlement in principle ensures the company takes responsibility for its brazen actions and is a major step as we head to our first trial."

The states have also secured settlements in the same litigation with Glenmark, Lannett, Bausch, Apotex, and Heritage totaling approximately $96.5 million, part of a broader effort spanning dozens of generic drugs.

The Connecticut Attorney General's Office has led a coalition of nearly all states and territories in a series of antitrust cases targeting the generic drug industry since 2016, when the first complaint named Heritage Pharmaceuticals and 17 other corporate defendants under then-Attorney General George Jepsen. A second complaint, filed in 2019, named Teva Pharmaceuticals and 20 other manufacturers.

The settlement in principle is contingent on signatures from all necessary states and territories, and comes as the coalition prepares for an anticipated trial in 2027.