Washington AG Announces $17.85M in Drug Price-Fixing Settlements, New Lawsuit Filed

Settlements with Lannett and Bausch Health resolve allegations of widespread price-fixing conspiracy for generic drugs.

Published on Feb. 3, 2026

Washington Attorney General Nick Brown announced that two pharmaceutical companies, Lannett Company Inc. and Bausch Health US LLC, have agreed to pay a combined $17.85 million to resolve allegations that they participated in a long-running conspiracy to fix prices, limit competition, and restrain trade for numerous generic medications. The settlements are part of a broader multistate investigation into price-fixing in the generic drug industry.

Why it matters

The alleged price-fixing conspiracy caused consumers to pay significantly higher prices for some generic drugs, in some cases more than ten times their original cost. The settlements aim to hold companies accountable and provide restitution for consumers and businesses harmed by the alleged conduct.

The details

The settlements resolve allegations that Lannett and Bausch Health participated in widespread efforts to artificially inflate prices and limit competition for a range of generic medications, from antibiotic ointments to cancer treatments. As part of the agreements, the companies have agreed to cooperate with ongoing litigation against remaining defendants and implement internal reforms to ensure compliance with antitrust laws.

  • The settlements cover alleged conduct between May 1, 2009, and December 31, 2019.
  • The first trial in the broader multistate case is expected to take place in late 2026 in Connecticut.

The players

Nick Brown

The Washington Attorney General who announced the settlements and new lawsuit.

Lannett Company Inc.

One of the pharmaceutical companies that agreed to pay $17.85 million to resolve allegations of price-fixing.

Bausch Health US LLC

One of the pharmaceutical companies that agreed to pay $17.85 million to resolve allegations of price-fixing.

Novartis

The pharmaceutical company that, along with its generic subsidiary Sandoz, was named in a new antitrust lawsuit filed by 42 states and territories.

Sandoz

The generic subsidiary of Novartis that was named in a new antitrust lawsuit filed by 42 states and territories.

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What they’re saying

“We must hold companies accountable and pursue restitution for consumers and businesses harmed by this alleged conduct.”

— Nick Brown, Washington Attorney General (dailyfly.com)

What’s next

The first trial in the broader multistate case is expected to take place in late 2026 in Connecticut.

The takeaway

This case highlights the ongoing efforts by state attorneys general to investigate and take legal action against alleged price-fixing in the generic drug industry, which has resulted in significant consumer harm through inflated prices for essential medications.