State AG Settlements and Lawsuit Over Generic Drug Prices

AG: South Dakota Press Releases

Filed February 2nd, 2026

Detected March 18th, 2026

Summary

South Dakota Attorney General Marty Jackley announced settlements totaling $17.85 million with Lannett Company and Bausch Health over alleged price inflation of generic drugs. Additionally, the state joined a lawsuit against Novartis and Sandoz for similar price-fixing allegations.

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What changed

South Dakota, along with 48 other states and territories, has reached settlements totaling $17.85 million with Lannett Company, Inc. and Bausch Health US, LLC, and Bausch Health Americas, Inc. These settlements resolve allegations of long-running conspiracies to artificially inflate prices, reduce competition, and restrain trade for numerous generic prescription drugs between May 2009 and December 2019. Concurrently, South Dakota is participating in a new lawsuit filed by 42 other states and territories against Novartis and its subsidiary Sandoz, alleging a systematic campaign to fix prices, allocate markets, and rig bids for 31 different generic drugs.

Regulated entities, specifically generic drug manufacturers, should be aware of these significant enforcement actions and the potential for further scrutiny regarding pricing and competition practices. Consumers who purchased generic prescription drugs manufactured by Lannett or Bausch between May 2009 and December 2019 may be eligible for compensation and are directed to contact the provided hotline, email, or website for more information. The lawsuit against Novartis and Sandoz indicates ongoing litigation and potential future remedies or penalties.

What to do next

Review internal pricing and competition practices for generic drugs.
Monitor ongoing litigation and potential future settlements or judgments related to the Novartis/Sandoz lawsuit.
Ensure compliance with all antitrust and consumer protection laws regarding drug pricing.

Penalties

$17.85 million in settlements with Lannett and Bausch. Further penalties may arise from the lawsuit against Novartis and Sandoz.

Source document (simplified)

Attorney General Marty Jackley

A TTORNEY OFFICE OF THE
SOUTH DAKOTA G ENERAL

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South Dakota Attorney General Jackley Announces Settlement With Two Generic Drug Companies, Joins Lawsuit Against a Third
FOR IMMEDIATE RELEASE: Monday, Feb 2, 2026

Contact: Tony Mangan , Communications Director, 605-773-6878

PIERRE, S.D. – South Dakota Attorney General Marty Jackley and a coalition of 48 states and territories announce settlements with Lannett Company, Inc. (“Lannett”) and Bausch Health US, LLC and Bausch Health Americas, Inc. (“Bausch”), totaling $17.85 million to resolve allegations that both companies engaged in widespread, long-running conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs.

Attorney General Jackley also is part of another group of Attorneys General representing 42 states and territories who have filed a new lawsuit against Novartis and its generic subsidiary Sandoz alleging a systemic campaign to conspire with other generic manufacturers to fix prices, allocate markets and rig bids for 31 different generic drugs.

“This is part of the effort by Attorneys General nationwide to hold these companies accountable when they artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs,” said Attorney General Jackley. “Consumers should not be forced to pay higher prices for the illegal actions of these companies.”

South Dakotans who purchased a generic prescription drug manufactured by either Lannett or Bausch between May 2009 and December 2019, may be eligible for compensation. To determine eligibility, call 1-866-290-0182 (Toll-Free), email info@AGGenericDrugs.com or visit www.AGGenericDrugs.com.

Other states and territories settling Monday with Lannett and Bausch include: Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico.

South Dakota is joined in filing the new complaint against Novartis and Sandoz with the Attorneys General of Alaska, Arizona, California, Connecticut, Colorado, Delaware, District of Columbia, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, Vermont, U.S. Virgin Islands, Virginia, Washington, West Viginia, Wisconsin, and Wyoming.

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