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State AGs Secure $17.85M Settlements with Pharma Companies, File New Complaint

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Detected February 7th, 2026
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Summary

Massachusetts Attorney General Andrea Joy Campbell, joined by 48 other states and territories, secured $17.85 million in settlements with Lannett and Bausch over price manipulation schemes for generic drugs. A new lawsuit was also filed against Novartis and Sandoz for similar allegations. Massachusetts will receive $203,410 from the settlements.

What changed

Massachusetts Attorney General Andrea Joy Campbell, as part of a coalition of 48 states and territories, has secured two 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 and reduce competition for numerous generic prescription drugs. Massachusetts will receive $203,410, and restitution will be made available to eligible consumers. Additionally, a new lawsuit has been filed by a coalition of 42 states and territories against Novartis and its subsidiary Sandoz, alleging a systemic campaign to fix prices, allocate markets, and rig bids for 31 different generic drugs.

Companies involved in the settlements are required to implement internal reforms to ensure fair competition and cooperate with ongoing multistate litigation. Consumers who purchased generic prescription drugs manufactured by Lannett or Bausch between May 2009 and December 2019 may be eligible for compensation by contacting the provided hotline, email, or website. The new lawsuit against Novartis and Sandoz represents a continuation of multistate efforts to combat alleged price manipulation in the generic drug market, with potential implications for market practices and consumer pricing.

Source document (simplified)

  • This page, AG Campbell Secures $17.85 Million Settlements With Pharmaceutical Companies Lannett And Bausch Over Widespread Price Manipulation Scheme; Announces New Complaint Against Novartis And Sandoz , is offered by
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Sydney Heiberger, Press Secretary

Phone

Call Sydney Heiberger, Press Secretary at (617) 727-2543

Online

Email Sydney Heiberger, Press Secretary at Sydney.Heiberger@mass.gov

BOSTON — Massachusetts Attorney General Andrea Joy Campbell joined a coalition of 48 states and territories in securing two settlements totaling $17.85 million against pharmaceutical companies Lannett Company, Inc. (“Lannett”) and Bausch Health US, LLC and Bausch Health Americas, Inc. (“Bausch”), resolving allegations that they 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. As a result of these settlements, the companies are required to pay Massachusetts $203,410 and make restitution available to eligible Massachusetts consumers.

Under the terms of the agreements, both companies have agreed to a series of internal reforms to ensure fair competition and compliance with antitrust laws. They have also agreed to cooperate in the ongoing multistate litigation against dozens of corporate defendants and individual executives.

The Lannett and Bausch settlements follow prior settlements with two other drug companies, Apotex and Heritage, which totaled $49.1 million.

If you purchased a generic prescription drug, like certain anti-depressants, blood pressure stabilizers, and diabetes medication, manufactured by either Lannett or Bausch between May 2009 and December 2019, you may be eligible for compensation. To determine your eligibility, call 1-866-290-0182 (Toll-Free), email info@AGGenericDrugs.com or visit www.AGGenericDrugs.com.

AG Campbell has also joined a coalition of 42 states and territories in filing 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. The complaint further alleges that Novartis took steps to fraudulently transfer and drain assets from Sandoz and spin off Sandoz to shield Novartis from liability in the three previously filed state antitrust complaints against the company.

Massachusetts is among a coalition of nearly all states and territories that, beginning in 2017, has filed three antitrust complaints against pharmaceutical companies in relation to similar allegations of conspiracies to inflate prices and limit competition.

The first Complaint included Heritage, 17 other corporate Defendants, and two individual Defendants in relation to 15 generic drugs. Two former executives from Heritage Pharmaceuticals have since entered into settlement agreements and are cooperating.

The second Complaint was filed in 2019 against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers. The Complaint named 16 individual senior executive Defendants.

The third Complaint focused on 80 topical generic drugs that account for billions of dollars of sales in the United States and named 26 corporate defendants and 10 individual defendants. Seven additional pharmaceutical executives have entered into settlement agreements with the States and have been cooperating to support the States’ claims in all three cases.

This lawsuit is representative of AG Campbell’s commitment to ensuring that lifesaving drugs remain accessible and affordable. In 2025, AG Campbell filed a lawsuit against major insulin manufacturers and pharmacy benefit managers for an unfair and deceptive insulin pricing scheme, including increasing the price of their insulins up to 1000% in the last decade.

In Massachusetts, this matter is being handled by Chief Anthony Mariano, Deputy Chief Jennifer Greaney, Economist Christina Braeuning, and all of the AGO’s Antitrust Division.

Joining AG Campbell in reaching the Lannett and Bausch settlements are the states and territories of Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, 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, South Dakota, Tennessee, Utah, U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico.

Joining AG Campbell in filing the lawsuit against Novartis and Sandoz are the states and territories of Alaska, Arizona, California, Connecticut, Colorado, Delaware, District of Columbia, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, 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, South Dakota, Tennessee, Vermont, U.S. Virgin Islands, Virginia, Washington, West Viginia, Wisconsin, and Wyoming.

Sydney Heiberger, Press Secretary

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Phone

Call Sydney Heiberger, Press Secretary at (617) 727-2543

Online

Email Sydney Heiberger, Press Secretary at Sydney.Heiberger@mass.gov

Sydney Heiberger, Press Secretary

Phone

Call Sydney Heiberger, Press Secretary at (617) 727-2543

Online

Email Sydney Heiberger, Press Secretary at Sydney.Heiberger@mass.gov

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Source

Analysis generated by AI. Source diff and links are from the original.

Classification

Agency
State Attorneys General (10 States)
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive

Who this affects

Applies to
Drug manufacturers Pharmaceutical companies
Geographic scope
National (US)

Taxonomy

Primary area
Antitrust & Competition
Operational domain
Legal
Topics
Pharmaceuticals Price Manipulation Generic Drugs

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