CARSON CITY, Nev. (FOX5) — Nevada Attorney General Aaron Ford joined a coalition of 43 states and territories in announcing a $400 million settlement in principle with Sandoz Inc. over allegations that the generic drug manufacturer engaged in widespread, long-running conspiracies to artificially inflate and manipulate prices, reduce competition and unreasonably restrain trade on numerous generic prescription drugs.
If approved, Sandoz Inc. will pay a total of approximately $469 million to settle claims brought by state enforcers, including amounts paid under previous settlements with other states. The total amount Nevada will receive has not been determined. Information regarding restitution for eligible consumers will be shared at a later date. Some recoveries will go toward Medicaid and non-Medicaid state agencies.
MORE ON FOX5: How Tupac Shakur’s 1996 Las Vegas murder became a trial nearly 30 years in the making
Settlement terms and scope
The settlement also resolves allegations that Sandoz Inc.’s past and present international affiliates — Novartis AG, Sandoz AG and Sandoz Group AG — participated in the alleged anticompetitive conduct and fraudulently transferred assets to avoid liability. As part of the settlement in principle, Sandoz has agreed to injunctive terms including internal reforms to ensure fair competition and compliance with antitrust laws.
The settlement is contingent upon obtaining signatures from all necessary states and territories. It comes as states prepare for an anticipated trial in 2027.
Broader litigation
States have also secured settlements in the same litigation with Glenmark, Lannett, Bausch, Apotex and Heritage totaling approximately $96.5 million.
The coalition of nearly all states and territories has been pursuing a series of antitrust cases that began in 2016. The first complaint named Heritage and 17 other corporate defendants, two individual defendants and 15 generic drugs. A second complaint was filed in 2019 against Teva Pharmaceuticals and 20 of the nation’s largest generic drug manufacturers, naming 16 individual senior executive defendants. A third complaint focuses on 80 topical generic drugs accounting for billions of dollars in U.S. sales and names 26 corporate defendants and 10 individual defendants. A fourth complaint, filed earlier this year, alleges that Novartis AG, Sandoz Group AG and Sandoz AG are liable for Sandoz’s alleged conduct and for fraudulently transferring assets.
The cases stem from investigations supported by cooperating witnesses, a database of more than 20 million documents and millions of phone records involving more than 600 sales and pricing executives across the generic drug industry. Seven pharmaceutical executives have been cooperating to support the states’ claims.
Alleged collusion tactics
The complaints allege that defendants used coded phrases such as “fair share,” “playing nice in the sandbox” and “responsible competitor” to discourage competition, raise prices and reinforce a culture of collusion. Evidence includes a two-volume notebook containing contemporaneous notes from a cooperating witness documenting conversations with competitors and discussions during internal company meetings over several years.
“This settlement reflects years of dedicated work by attorneys and investigators from across the country to expose an alleged scheme that undermined competition and increased the cost of prescription drugs,” Ford said. “When pharmaceutical companies manipulate prices and restrict competition, consumers ultimately pay the price. My office will continue working to hold bad actors accountable, protect consumers and ensure Nevadans have access to affordable prescription medications through a fair and competitive marketplace.”
Copyright 2026 KVVU. All rights reserved.
