Massachusetts Joins $17.85 Million Generic Drug Price-Fixing Settlements

Key Takeaways

• $17.85 Million in Settlements: Lannett and Bausch agreed to resolve multistate claims tied to alleged generic drug price manipulation.
• Restitution for Consumers: Massachusetts will receive $203,410, with compensation available to eligible consumers who purchased affected drugs between 2009 and 2019.
• Compliance Reforms Included: Both companies agreed to internal changes and to cooperate with ongoing state litigation.
• New Lawsuit Filed: States are now pursuing fresh antitrust claims against Novartis and Sandoz over alleged price-fixing and asset transfers.
• Long-Running Enforcement Effort: The cases are part of a nationwide push dating back to 2017 to address alleged collusion in the generic drug industry.

Deep Dive

Massachusetts Attorney General Andrea Joy Campbell has secured $17.85 million in multi-state settlements with pharmaceutical companies Lannett Company and Bausch Health, capping another chapter in a sweeping, years-long effort by states to unwind alleged price-fixing in the generic drug market.

The settlements, reached with a coalition of 48 states and territories, resolve claims that the two companies participated in long-running schemes to inflate prices, curb competition, and restrain trade across a broad range of generic prescription drugs. State attorneys general have argued that these practices quietly drove up costs for consumers and public health programs alike, often for medications that patients rely on daily.

As part of the agreements, Massachusetts will receive $203,410, while eligible Massachusetts consumers will be able to seek restitution. The Attorney General’s Office said consumers who purchased certain generic drugs (including medications used to treat depression, high blood pressure, and diabetes) manufactured by Lannett or Bausch between May 2009 and December 2019 may qualify for compensation.

Beyond the financial terms, both companies agreed to adopt internal compliance and competition reforms, a common feature of recent state antitrust settlements. They also committed to cooperate with states in ongoing litigation targeting other companies and executives allegedly involved in similar conduct.

The Lannett and Bausch settlements follow earlier resolutions with Apotex and Heritage Pharmaceuticals, which together totaled $49.1 million. Several former Heritage executives have already entered into cooperation agreements, bolstering states’ broader cases against the industry.

At the same time, Campbell announced that Massachusetts has joined a separate coalition of 42 states and territories in filing a new lawsuit against Novartis and its generic subsidiary Sandoz. That complaint alleges a coordinated effort to fix prices, divide markets, and rig bids for 31 generic drugs, extending the states’ enforcement push into fresh territory.

The lawsuit also accuses Novartis of taking steps to shift and drain assets from Sandoz before spinning the company off, a move the states claim was designed to limit Novartis’s exposure to liability tied to earlier antitrust actions.

Massachusetts has been part of nearly all multistate generic drug antitrust cases filed since 2017, including three major complaints that together name dozens of pharmaceutical companies and senior executives. Those cases have covered everything from widely used oral medications to topical generics accounting for billions of dollars in U.S. sales. According to the Attorney General’s Office, multiple executives have already settled and are cooperating with investigators.

Campbell’s office framed the latest actions as part of a broader effort to rein in pricing practices that place essential medicines out of reach for patients. In 2025, the attorney general also filed suit against major insulin manufacturers and pharmacy benefit managers, accusing them of participating in an unfair and deceptive pricing scheme that allegedly drove insulin prices up by as much as 1,000 percent over the past decade.

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