Under the terms of the agreement, “The subsidiaries will make an aggregate payment of USD 200 million in exchange for a full release of all claims asserted against them in the End Purchaser Action by the settlement class members.”
As per various media accounts, the settlement does not involve any admission of wrongdoing and remains subject to court approval, with the final payout potentially reduced if a significant portion of class members opt out.
Also Read: Sun Pharma Arms To Pay USD 85 Million In settlement Pacts Over Antitrust Litigation
The Drug and The Allegation
The litigation alleges that Sun Pharma, along with other generic drugmakers, conspired to inflate prices or allocate market shares for up to 18 generic drugs, impacting categories like antibiotics, cardiovascular treatments, and more, reports Bloomberg.
While Sun did not specify individual drugs in its public filings, prior MDL class actions involved medications across various therapeutic areas. Notably, Sun and Taro previously settled related claims in an $85 million class action involving price-fixing allegations across certain generic products, with Sun Pharma’s share estimated at around $17.36 million, reports PTI.
Why It Matters
This settlement offers Sun’s U.S. operations a comprehensive release from legal claims filed by end purchaser plaintiffs—including consumers, health plans, and institutions—for alleged antitrust violations tied to generic drug pricing.
The resolution also arrives at a pivotal moment in Sun's broader U.S. strategy: the company recently secured a licensing agreement with Incyte Corporation for LEQSELVI (deuruxolitinib) 8 mg tablets, following a separate patent dispute settlement.
According to the Economic Times report, industry analysts expect this litigation closure may influence investor sentiment and stock performance. Sun clarified that the settlement does not amount to an admission of liability—reinforcing its corporate stance while mitigating exposure in a major multijurisdictional class action.
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