Sandoz US Settles Antitrust Class Action Litigation With Direct Purchaser Class Plaintiffs

(RTTNews) - Sandoz Inc. and its subsidiary Fougera Pharmaceuticals Inc.- both indirect subsidiaries of Sandoz Group AG (SDZNY) - have entered into a settlement agreement with the class of direct purchaser plaintiffs in the multidistrict litigation entitled In re Generic Pharmaceuticals Pricing Antitrust Litigation in the US District Court for the Eastern District of Pennsylvania.

This settlement agreement constitutes a resolution of all damages claims brought by the direct purchaser class, which is the only plaintiff class that purchased directly from Sandoz US and filed under federal law. It should be noted that this agreement does not entail any admission of wrongdoing by Sandoz US.

As per the terms of the agreement, Sandoz US will pay USD 265 million in exchange for a comprehensive release of all claims asserted against it by the settlement class members in the direct purchaser class action. The full amount paid will be reflected in the company's 2023 financial results.

As a new public company, this settlement underscores the Sandoz commitment to integrity and sound governance and is an encouraging step toward putting allegations of legacy conduct behind us.

Settlement terms in addition to the payment include a broad release of claims which encompasses alleged conduct that occurred between 2009 and 2019, as well as all medicines related to the direct purchaser class claims. Class members retain the right to opt out of the settlement, which may result in a proportional reduction of the settlement amount by up to 12 percent, or USD 31.8 million, based on the total dollar sales of the generic pharmaceutical products in question. Further, Sandoz US has the prerogative to terminate the settlement if a predetermined threshold of opt-outs is reached.

The settlement is subject to Court approval, as is required for class settlements under US law. If the Court preliminarily approves the settlement, class members will be notified of the settlement and allowed to opt out of the class, object to the settlement, and file a claim to receive a settlement payment.