Attorney General Phil Weiser announces settlements with Lannett and Bausch totaling $17.85 million over conspiracies to inflate drug prices and limit competition

The attorney general also files new complaint against Novartis and Sandoz

Feb. 2, 2026 (DENVER) – Attorney General Phil Weiser today joined a bipartisan, multistate coalition of 48 states and territories in announcing settlements with Lannett Company, Inc. (“Lannett”) and Bausch Health US, LLC and Bausch Health Americas, Inc. (“Bausch”), totaling $17.85 million. The settlements resolve allegations that both companies engaged in widespread, long-running conspiracies to artificially inflate and manipulate prices, limit competition, and unreasonably restrain trade for numerous generic prescription drugs.

Under the settlement agreements, Lannett and Bausch have agreed to cooperate with the states’ ongoing antitrust litigation against other corporate defendants and individual executives involved in the alleged misconduct. Both companies have also committed to internal reforms designed to promote fair competition and ensure compliance with antitrust laws.

“Coloradans and consumers across the country deserve fair prices for lifesaving medications, not inflated costs driven by illegal backroom deals. These settlements hold drug manufacturers accountable for harming patients and families, return money to consumers, and reinforce that companies doing business in Colorado must follow the law,” said Attorney General Weiser. “My office will continue working with our state and national partners to protect competition and ensure the pharmaceutical market works for people — not price-fixers.”

The Lannett and Bausch settlements follow earlier settlements with Apotex and Heritage Pharmaceuticals, which together totaled $49.1 million. These agreements come as the states prepare for the first trial in the multistate litigation, currently anticipated to be held in Hartford, Connecticut, in late 2026.

Those who purchased a generic prescription drug manufactured by Lannett or Bausch between May 2009 and December 2019, may be eligible for compensation. To determine eligibility, call 1-866-290-0182 (toll-free), email info@AGGenericDrugs.com, or visit www.AGGenericDrugs.com (opens new tab).

Also today, 42 states and territories, including Colorado, filed a new lawsuit against Novartis, and its generic subsidiary Sandoz, alleging a systemic campaign to conspire with other generic manufacturers to fix prices, allocate markets and rig bids for 31 different generic drugs. The complaint further alleges that Novartis took steps to fraudulently transfer and drain assets from Sandoz and spin off Sandoz to shield Novartis from liability in the three previously filed state antitrust complaints against the company.

The multistate cases arise from coordinated investigations involving extensive documentary evidence, phone records, and cooperation from multiple industry insiders. The states allege that executives from competing generic drug manufacturers regularly communicated and met at industry events, social gatherings, and private meetings to coordinate pricing and suppress competition.

Across three related antitrust complaints, the states allege conspiracies involving dozens of corporate defendants, numerous senior executives, and more than 80 generic prescription drugs accounting for billions of dollars in U.S. sales. Evidence obtained by the states includes millions of documents, detailed call records, and contemporaneous notes kept by cooperating witnesses that memorialize discussions among competitors and internal company meetings over several years.

The complaints describe how defendants used coded language such as “fair share,” “playing nice in the sandbox,” and “responsible competitor” to disguise unlawful agreements that discouraged competition, raised prices, and enforced a culture of collusion throughout the generic drug industry.

States and territories settling today with Lannett and Bausch include: Alaska, Arizona, California, Colorado, Connecticut, Delaware, 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, U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico.

States and territories filing the new complaint against Novartis and Sandoz include: Alaska, Arizona, California, Connecticut, Colorado, Delaware, District of Columbia, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New  York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Dakota, Tennessee, Vermont, U.S. Virgin Islands, Virginia, Washington, West Viginia, Wisconsin, and Wyoming.

Read the Lannett and Bausch settlement (PDF).

Read the Novartis and Sandoz complaint (PDF).

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Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov