Michigan Attorney General Dana Nessel has announced two settlements totaling $17.85 million with Lannett Company, Inc. and Bausch Health US, LLC and Bausch Health Americas, Inc., as part of ongoing litigation concerning alleged conspiracies to inflate prices and limit competition in the generic drug market. The settlements resolve claims that both companies participated in schemes to manipulate prices, reduce competition, and restrain trade involving several generic prescription drugs.
Both companies have agreed to cooperate in continued multistate legal actions against 30 corporate defendants and 25 individual executives. They will also implement internal reforms aimed at promoting fair competition and complying with antitrust laws.
These settlements follow previous agreements with Apotex and Heritage totaling $49.1 million. The coalition of states is preparing for the first trial related to these cases, which is expected to take place in Hartford, Connecticut, in late 2026.
Individuals who purchased generic prescription drugs manufactured by Lannett or Bausch between May 2009 and December 2019 may be eligible for compensation through this settlement process.
Attorney General Nessel has also joined a coalition of 42 states and territories in filing a new lawsuit against Novartis AG and its subsidiaries Sandoz Group AG and Sandoz AG. The complaint alleges that Novartis conspired with other manufacturers to fix prices, allocate markets, and rig bids for 31 generic drugs. It further claims that Novartis attempted to shield itself from liability by transferring assets from Sandoz before spinning it off.
“I am proud of the work my office has done with this multistate coalition to hold drug companies accountable for their role in manipulating prices, reducing competition, and restraining trade in prescriptions,” said Attorney General Nessel. “We will continue to pursue corporations that put profits over patients. If you purchased a prescription drug manufactured by Lannett or Bausch, please check to see if you are eligible for compensation.”
Michigan is part of nearly all states and territories involved in three major antitrust cases targeting generic drug pricing practices. These cases involve multiple corporate defendants, individual executives, and numerous generic drugs accounting for significant sales across the United States. Several pharmaceutical executives have entered into settlement agreements with the states and are cooperating as witnesses.
The Michigan Department of Attorney General serves as the chief legal office for Michigan residents, focusing on public service initiatives such as handling consumer complaints, issuing scam alerts, supporting crime victims, combating human trafficking, addressing data breaches, assisting with expungements through laws like Clean Slate enacted in 2019, advancing social impact efforts for vulnerable populations—including responses to the opioid epidemic—and exercising statewide authority to protect residents (official website).
Dana Nessel is Michigan’s 54th attorney general (official website). The department continues its mission as the state’s primary legal entity (official website), operating throughout Michigan to safeguard residents (official website) through enforcement actions like those announced this week.
