Health Law Daily Wrap Up, ANTITRUST—D. Conn.: Settlement reached with Bausch, Lannett, in multi-state antitrust litigation, (Feb 4, 2026)

By Jeffrey H. Brochin, J.D.

Two manufacturers agree to $17.85 million settlement fund and other conditions to resolve allegations of long-running conspiracy to artificially inflate and manipulate generic drug prices.

A proposed settlement between states and Bausch Health US, LLC and Bausch Health Americas, Inc. (Bausch) and Defendant Lannett Company, Inc. (Lannett) has been reached and filed with the federal district court in Connecticut, the state’s Attorney General Tong has announced. The settlement resolves claims brought by an antitrust lawsuit alleging widespread drug price manipulation conspiracies in the generic drug industry. In addition to the monetary payment, the proposed settlement requires cooperation by the two Defendants in the ongoing multistate litigations led by Connecticut against 30 corporate defendants and 25 individual executives, as well as the adoption of internal reforms to ensure fair competition and compliance with antitrust laws (State of Connecticut v. Aurobindo Pharma USA, Inc., No. 3:16-cv-02056-MPS (D. Conn. Feb. 2, 2026)).

Background. The States have filed three separate actions against generic drug manufacturers alleging that they conspired to fix prices and allocate markets for many generic drugs in violation of federal antitrust laws and state antitrust and consumer protection laws. In each of the actions, the States alleged an overarching conspiracy and anticompetitive acts. According to a statement issued by Connecticut Attorney General William Tong, Lannett and Bausch both engaged in widespread conspiracies to jack up prices and block competition for generic prescription drugs. Their brazen collusion cost American families and our public healthcare programs millions of dollars.’ In response to the alleged antitrust conspiracies, Connecticut led a coalition of 48 states and territories, with the first case being filed in 2016, and the next one in 2019.

The series of investigations into the conduct involved cooperation from several witnesses, a massive document database of over 20 million documents, and a phone records database involving millions of call detail records.

Bausch settlement terms. Bausch has agreed to pay over $1.8 million to consumers and almost $1 million to the states to settle the claims. Also, Bausch agreed not to, for four years from the execution of the agreement, engage in any unlawful price fixing, bid rigging, or market allocation as to any Generic Pharmaceutical Product in violation of Section 1 of the Sherman Act. In addition, they agreed to implement and maintain for a period of four years, a written “Antitrust Compliance Policy,” on which all current Bausch employees responsible for the pricing, sale, bidding, or marketing of generic pharmaceuticals in the United States (including those in a management or employee capacity) are to be trained. Bausch also agreed to cooperate with authorities with the ongoing litigation against other Defendants not settled with, and, with respect to new complaints being filed over generic drug antitrust conduct.

Lannett settlement terms. In addition to paying over $6 million to consumers and $3.3 million to hte states, Lannett agreed to abide by certain injunctive terms during a 10-year period from the execution of the Lannett settlement agreement (Enforcement Period) and covenanted that it, along with its current directors, officers, and employees will not, directly or indirectly, maintain, solicit, suggest, advocate, discuss, or carry out any unlawful agreement with any actual or potential competitor in the generic pharmaceutical industry to: (a) fix prices for generic pharmaceuticals; (b) submit courtesy, cover, or otherwise non- competitive, bids or proposals for the supply, distribution, or sale of generic pharmaceuticals; (c) refrain from bidding on, or submitting proposals for, the supply, distribution, or sale of generic pharmaceuticals; or (d) allocate customers for the sale of generic pharmaceuticals for the Enforcement Period.

Lannett further represented it has implemented, and shall continue to maintain during the Enforcement Period, a written “Antitrust Compliance Manual,” on which all current Lannett employees have been trained, including its employees engaged in activities relating to the pricing or sale of generic pharmaceuticals.

As part of the press release announcing the two proposed settlements, the Connecticut Attorney General’s office advised the public ‘if you purchased a generic prescription drug manufactured by either Lannett or Bausch between May 2009 and December 2019, you may be eligible for compensation. To determine your eligibility, call 1-866-290-0182 (Toll-Free), email info@AGGenericDrugs.com or visit www.AGGenericDrugs.com.’

The Case is No. 3:16-cv-02056-MPS.

Judge: Shea, M.

Attorneys: Allison Frisbee, Office of the Attorney General, for State of Connecticut. Benjamin H. Diessel (Wiggin and Dana LLP) for Aurobindo Pharma USA, Inc.

Companies: Aurobindo Pharma USA, Inc.

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