Michigan announces $17.85 million settlements over alleged price-fixing by drug companies

Dana Nessel, Attorney General of Michigan
Dana Nessel, Attorney General of Michigan
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Michigan Attorney General Dana Nessel announced that Michigan, along with 49 other states and territories, has reached two settlements totaling $17.85 million in a long-standing antitrust case involving generic drug manufacturers Lannett Company, Inc. and Bausch Health US, LLC (including Bausch Health Americas, Inc.). The settlements address claims that the companies conspired to inflate prices, reduce competition, and restrain trade for various generic prescription drugs.

Both companies have agreed to cooperate in ongoing multistate litigation against 30 corporate defendants and 25 individual executives. They have also committed to internal reforms intended to ensure compliance with antitrust laws.

These latest agreements follow earlier settlements with Apotex and Heritage Pharmaceuticals worth $49.1 million. The states are preparing for their first trial related to this litigation in Hartford, Connecticut, expected in late 2026.

Consumers who purchased generic drugs from Lannett or Bausch between May 2009 and December 2019 may be eligible for compensation through the settlement process.

Attorney General Nessel also joined a coalition of 42 states and territories in filing a new lawsuit against Novartis AG and its subsidiaries Sandoz Group AG and Sandoz AG. The suit alleges a coordinated effort among generic manufacturers to fix prices, allocate markets, and rig bids for 31 generic drugs. It further accuses Novartis of attempting to shield itself from liability by transferring assets from Sandoz before spinning off the company.

“I am proud of the work my office has done with this multistate coalition to hold drug companies accountable for their role in manipulating prices, reducing competition, and restraining trade in prescriptions,” said Attorney General Nessel. “We will continue to pursue corporations that put profits over patients. If you purchased a prescription drug manufactured by Lannett or Bausch, please check to see if you are eligible for compensation.”

Michigan participates as part of a nearly nationwide coalition involved in three major antitrust lawsuits concerning the generic drug industry. These cases involve multiple companies and executives accused of collusion through meetings at industry events and frequent communication via calls, emails, texts, as documented by evidence including millions of records collected during investigations.

The Michigan Department of Attorney General serves as the chief legal office for the state with authority throughout Michigan to safeguard residents. The office manages consumer complaints, issues scam alerts and assists crime victims, while advancing social initiatives such as supporting vulnerable populations and addressing public protection needs. Dana Nessel is recognized as Michigan’s 54th attorney general according to official sources.

States participating in these actions include most U.S. states plus several territories such as Puerto Rico and the U.S. Virgin Islands.



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