Manufacturer giants Bausch and Lannett have agreed to pay out over $17 million to settle allegations of price-fixing in the generic drug market. New York Attorney General Letitia James led a coalition of 47 states to secure these funds in an effort to combat what has been described as an extensive conspiracy to inflate drug prices. The details, which can be found on the New York Attorney General's Office website, lay out the companies' agreement to implement internal reforms alongside the substantial financial payouts.
This settlement marks significant progress in continuing litigation targeting generic drug price collusion involving multiple companies. "Access to affordable prescription drugs is a necessity for millions of New Yorkers," Letitia James stated in comments obtained by the New York Attorney General's Office, drawing attention to the need for consumer restitution. According to the settlement, consumers who purchased specific drugs between May 2009 and December 2019 may be eligible for compensation—an opportunity that they are encouraged to quickly explore and claim.
The collusive behavior uncovered by investigators painted a picture of an industry culture steeped in backroom deals and unlawful agreements. Lannett is set to pay $13.77 million, while Bausch's fine will total $4.08 million. These funds will provide restitution to affected consumers across the nation, and the companies have agreed to prevent future violations by instituting an Antitrust Compliance Program, which will include annual training for sales and management staff to uphold fair competition and antitrust laws.
The legal action is a follow-up to earlier settlements reached by the coalition, including a November 2024 agreement with Apotex and Heritage amounting to $49.1 million. These companies have also vowed to support the ongoing lawsuit efforts, which, according to the Attorney General's Office, lay bare a systematic effort by pharmaceutical executives to restrict competition and inflate drug prices. Defendants at various levels allegedly utilized an assortment of industry meetups, from "girls’ nights out" to golf outings, to solidify their illegal agreements—a strategy that was meant to foster what they referred to as "playing nice in the sandbox."
Among those taking up the mantle for fair drug pricing are Attorney General James and a team of attorneys general from 47 states, Washington, D.C., and several U.S. territories. The investigation has been spearheaded by the New York Attorney General’s Antitrust Bureau, which aims to ensure competitive markets and protect consumers from anticompetitive practices.
