Generic Pharmaceuticals Pricing Antitrust Litigation

IN RE: GENERIC PHARMACEUTICALS PRICING ANTITRUST LITIGATION

Current Settlement Totals:

• Direct Purchasers (Wholesalers and Distributors): $395 million

• Indirect Resellers (All Dispensers of Drugs including Hospitals and Independent Pharmacies): $5.5 million

• End Payors (Consumers, Insurance Companies, Third-Party Payors): $333 million

Total Settlements to Date: $733,537,000

MCAG is actively monitoring the case for updates on additional settlement funds and any upcoming filing deadlines.

Currently, there are no filing deadlines for the Indirect Reseller and End Payor Settlements.

Summary

Drug-makers of all sizes face allegations from the Department of Justice’s Antitrust Division (DOJ), State Attorneys General and private litigants that accuse the defendants of conspiring to cut down on competition and keep prices of over three hundred generic drugs artificially high.

Class members include hospitals, independent pharmacies, and businesses that operate as self-funded payors for their employee benefit plans (end payors).

Allegations

Typically, once a drug patent expires, generic manufacturers are given the green light to copy the drug and sell it as a generic version at a lesser price than its brand name equivalent. The US government has been investigating the generic drug industry since 2016 and claims to hold evidence that generic manufacturers conspired to split up the market and keep prices high. It is alleged the drug-makers kept drug price levels up at an alarming rate, frequently by more than 1,000 percent, over several years.

The amount of alleged overcharges has not been disclosed, but it is estimated that generic-industry sales were around $104 billion in 2017. The Association for Accessible Medicines states that generics account for 90 percent of the prescriptions in the United States.

Recent Activity

A major development in the ongoing litigation occurred when Sandoz reached a $275 million settlement with end payors in early 2025. Additionally, a state attorney general settlement with Apotex, Heritage, and Breckenridge for $48 million is currently pending, bringing the total recovery for this class to $333 million.

While settlements have been reached across all tracks, several defendants are still facing litigation. No track has yet secured full class certification against all defendants, and key aspects of the case continue to unfold.

As the litigation progresses, we will continue monitoring developments and providing updates on potential recovery opportunities for impacted businesses. There are currently no filing deadlines, but we will share updates as they become available. Stay tuned for more insights as the case evolves. Please feel free to contact our Account Services team to discuss further.