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In a sweeping move spanning nearly every corner of the country, Lannett and Bausch drug price fixing deal will cost the pharmaceutical companies $17.85 million to resolve allegations that they conspired to inflate prices of generic prescription drugs.

The proposed settlement, outlined in a motion filed Monday seeking preliminary approval, resolves claims brought by 48 states and territories accusing Lannett Company Inc., Bausch Health US LLC and Bausch Health America Inc. of coordinating to raise prices, stifle competition and restrain trade in the generic drug market.

Allegations of Artificial Price Inflation

Connecticut Attorney General William Tong, whose office is leading the broader multistate litigation, said the companies were accused of participating in long-running schemes designed to push prices upward while choking off competition.

“Lannett and Bausch both engaged in widespread conspiracies to jack up prices and block competition for generic prescription drugs,” Tong said. He added that the alleged conduct cost American families and public health care programs millions of dollars.

Under the agreement, the companies will not only pay $17.85 million but also implement internal reforms and cooperate with ongoing lawsuits. Those broader cases, spearheaded by Connecticut, target 30 corporate defendants and 25 individual executives accused of similar conduct.

The first trial in that litigation is expected to begin in late 2026 in Hartford, Connecticut.

Cooperation and Broader Legal Fight

Continuing Multi-State Litigation

As part of the settlement, Lannett and Bausch agreed to assist in the continuing prosecution of other defendants in the sprawling antitrust case.

Tong also noted that states are pursuing claims against Novartis and its subsidiaries, alleging the company is attempting to shield assets fraudulently to avoid accountability.

The Lannett and Bausch drug price fixing deal follows earlier settlements in the same investigation. Apotex and Heritage previously agreed to resolve claims for a combined $49.1 million.

States and Territories Involved

The jurisdictions participating in Monday’s settlement include Alaska, Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, the U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and Puerto Rico.

The proposed deal now awaits court approval.

As state attorneys general continue to peel back what they describe as layers of coordinated pricing practices, the settlement marks another chapter in a nationwide reckoning over the cost of generic drugs — medicines once marketed as the antidote to high pharmaceutical prices, now at the center of a high-stakes antitrust battle.