Connecticut Attorney General William Tong announced major developments in a multistate effort to address alleged price-fixing in the generic prescription drug market, including two settlements totaling $17.85 million and a new lawsuit targeting Novartis and its Sandoz subsidiaries.
Tong is leading a coalition of 48 states and territories in settling claims against Lannett Company, Inc. and Bausch Health entities, resolving allegations that the companies conspired for years to inflate prices, restrict competition, and harm consumers and public health programs. Both companies agreed to cooperate with ongoing litigation led by Connecticut and to implement internal reforms aimed at compliance with antitrust laws.
“These settlements hold companies accountable for conduct that harmed patients, families, and public healthcare systems,” Tong said, emphasizing that enforcement efforts remain active as the states move toward trial.
The settlements follow earlier agreements with Apotex and Heritage Pharmaceuticals and come as states prepare for the first trial, scheduled to be held in Hartford, Connecticut, in late 2026.
Connecticut officials also announced that 42 states and territories are filing a new complaint against Novartis, Sandoz AG, and Sandoz Group AG, alleging a coordinated effort to fix prices, rig bids, and improperly shield assets from liability.
“Lannett and Bausch both engaged in widespread conspiracies to jack up prices and block competition for generic prescription drugs. Their brazen collusion cost American families and our public healthcare programs millions of dollars. Both companies are now cooperating with our ongoing litigation. Also today, we will file a new complaint against Novartis and its subsidiaries to stop the company from fraudulently shielding assets to evade accountability. We continue to aggressively pursue this case and are very confident heading toward our first trial in Connecticut,” said Attorney General Tong.
Consumers who purchased certain generic drugs between 2009 and 2019 may be eligible for compensation, visit www.AGGenericDrugs.com to learn more.
