A coalition of 48 states and territories, including Colorado, reached settlements with drug manufacturers Lannett Company, Inc., Bausch Health US, LLC, and Bausch Health Americas, Inc., on Monday, totaling $17.85 million, after allegations that the companies inflated and manipulated prices.

The states alleged that the companies engaged in conspiracies to artificially inflate and manipulate prices, limit competition, and restrain trade for a number of generic prescription drugs.

Under the deal, Lannett and Bausch agreed to cooperate with ongoing antitrust litigation against other corporate defendants and executives involved in the alleged misconduct and to implement internal reforms 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,” said Colorado Attorney General Phil 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 attorney general’s office said people who purchased a generic prescription drug manufactured by Lannett or Bausch between May 2009 and December 2019 may be eligible for compensation.

Colorado and 41 other states and territories also filed a lawsuit today against Novartis and its generic subsidiary, Sandoz, alleging they conspired with other generic manufacturers to fix prices, allocate markets, and rig bids for 31 different generic drugs.

The states will get $12.6 million of the settlement, which will be distributed among them. The rest will pay for administrative work and to reimburse attorneys general for associated costs.

States are continuing the lawsuits against several other drug companies that did not reach a settlement in the broader lawsuit.