Oregon Joins $17.85 Million Generic Drug Price-Fixing Settlement and Some Residents May Get Money Back

A 49-state coalition of Attorneys General, including Oregon, filed a lawsuit against Lannett Company, Inc. (“Lannett”) and Bausch Health US, LLC and Bausch Health Americas, Inc. (“Bausch”). Two settlements were announced yesterday in the lawsuit.

The settlements total $17.85 million over allegations that the companies were engaged in widespread, long-running conspiracies seeking to artificially inflate and manipulate generic drug prices, reduce competition, and unreasonably restrain trade.

Oregon Settles Generic Drug Pricing Lawsuit: You Could Get Money

The Lannett and Bausch settlements come as the States head to the first trial in Hartford, Connecticut, which was expected to be scheduled in late 2026.

The settlements follow previous settlements with Apotex and Heritage, which totaled $49.1 million.

The lawsuit stemmed from a series of investigations built on evidence from several cooperating witnesses, over 20 million documents, and millions of call records and contact details of over 600 sales and pricing individuals in the generics industry.

The complaints illustrate an interconnected web of industry executives.

Competitors met during industry lunches, dinners, “girls’ nights out”, cocktail parties, and golf outings.

They communicated in frequent telephone calls, emails, and text messages using terms like “fair share,” “playing nice in the sandbox,” and “responsible competitor.”

AG Rayfield confirmed that when drug companies collude to raise prices and shut out competition, essential medications become more expensive for families who depend on them.

Oregon Attorney General Rayfield said, “For many working families, generic drugs are the difference between being able to afford their medication and going without it.”

If you bought specific generic prescription drugs in the US between May 1, 2009, and December 31, 2019, you could be eligible for money.

To see if you qualify, call 1-866-290-0182 (Toll-Free), email [email protected], or visit www.AGGenericDrugs.com.

As part of their settlement agreements, both companies agreed to cooperate in the ongoing litigations against 30 corporate defendants and 25 individual executives. Both also agreed to a series of internal reforms to ensure fair competition and comply with antitrust laws.

Oregon and 41 other states and territories will file a new lawsuit against Novartis and its generic subsidiary Sandoz, alleging a systemic campaign to conspire with other generic manufacturers.

Generic Price Fixing Has Driven Up Medicare Spending

Generic drug price-fixing schemes have been driving up Medicaid spending nationwide by billions over the past decade.

Oregon’s Medicaid program now faces tens of millions in overpayments, straining the state’s budget and forcing trade-offs in coverage for low-income residents.

A Washington State lawsuit alleges that billions of dollars in overcharges nationwide resulted from price fixing. Generic drugs, whose prices increased by over 100 percent, accounted for over $500 million in Medicaid drug reimbursements between June 2013 and June 2014.

In Oregon, Attorney General Ellen Rosenblum and Insurance Commissioner Andrew Stolfi have also jointly announced a $17 million settlement with health care giant Centene over pharmacy services, including allegations that the company overcharged Oregon’s Medicaid program for pharmaceutical costs.

The investigation examined whether Centene failed to provide specific pharmacy discounts in Oregon, leading to inflated fees paid to Centene.