42 States Sue Novartis and Sandoz for Generic Drug Price Fixing

The complaint, filed April 19, 2026, accuses Novartis and Sandoz of operating a systemic conspiracy to fix, raise, and maintain prices on generic pharmaceuticals. Acting AG Davenport and the Division of Consumer Affairs allege the companies exchanged pricing information and coordinated market allocation to suppress competition. The complaint is sealed pending service on defendants.

Generic drug price-fixing cases have drawn increasing scrutiny since the Department of Justice's 2016 guilty plea from Heritage Pharmaceuticals, which preceded several private class actions. The 42-state coalition exceeds the 39 states that joined the 2016 Humana pharmacy benefit manager lawsuit, suggesting unusually broad governmental consensus that the alleged conduct harmed consumers and payers.

Novartis AG is a Swiss-headquartered multinational with significant U.S. operations through Sandoz's American sales force. Any injunction or damages awarded could affect pricing across the generic drug supply chain, from pharmacy benefit managers to retail pharmacies and ultimately to patients paying out-of-pocket for generic medications.