If you paid for certain generic prescription drugs in Idaho between May 2009 and December 2019, state attorneys general say you may have been overcharged by what they describe as a price-fixing scheme among drugmakers. Now there is a way to try to get some of that money back.
Attorney General Raúl Labrador's office announced Tuesday that Idaho has joined more than 40 states and territories in asking a federal judge in Connecticut to approve a $400 million settlement with drugmaker Sandoz Inc. and its subsidiary Fougera Pharmaceuticals. Idaho also signed on to separate, smaller settlements with three other generic manufacturers: Ascend Laboratories, Citron Pharma and Mayne Pharma.
The states accuse the companies of taking part in a years-long effort to push up generic drug prices and cut down on competition. Labrador said the companies' conduct left Idahoans paying "artificially inflated costs" for critical medicines, and he urged anyone who paid for the covered drugs to file a claim.
The money on the table
New York, another coalition member, says Sandoz will spread payments of $320,560,180 across seven years, and with interest the total reaches $400 million. Counting earlier agreements the company struck with other states, Labrador's office puts Sandoz's total payout to state enforcers at roughly $469 million.
The other companies pay far less. Ascend owes $400,000 and Mayne owes $650,000. Citron, which has stopped doing business, agreed only to non-monetary terms. Add in earlier deals with Apotex, Bausch, Glenmark, Heritage and Lannett, and the settlements announced so far come to just under $500 million.
Idaho's announcement did not put a dollar figure on the state's share. For a sense of scale, neighboring Washington says its share tops $12 million, and Oregon's justice department puts its share at roughly $4.76 million.
What the states say drugmakers did
The settlement stems from three antitrust lawsuits the states filed against generic drugmakers. The states allege that executives at rival firms agreed on prices, split up customers and rigged bids on more than 100 generic drugs instead of competing for business. According to the states, those arrangements were worked out over phone calls, emails and texts, and in person at golf outings, cocktail parties, industry dinners and so-called "girls' nights out." Phrases such as "playing nice in the sandbox" and "fair share" turn up in the allegations.
Some of the coordinated price hikes topped 1,000 percent, the states say. The list covers pills and capsules as well as creams and ointments, with antibiotics, antidepressants, birth control and anti-inflammatory drugs among them. Those medicines treat everything from infections and diabetes to epilepsy, cancer, HIV and ADHD.
Sandoz has not admitted any wrongdoing, and the company has said the agreements contain no such admission by its U.S. business. The deal also resolves allegations that current and former overseas affiliates, including Novartis AG, took part in the conduct and shifted assets to avoid liability. Sandoz agreed to set up an antitrust compliance program with yearly training for its sales and management staff, and it will hire a chief compliance officer.
Idaho businesses can claim, too
Idaho stands out in one respect. Only two states in the coalition, Idaho and Washington, also won restitution for businesses hurt by the alleged price-fixing.
That means an Idaho business may qualify if it bought a covered drug indirectly, meaning from a seller other than the drugmaker itself, or if it paid for or reimbursed some of a drug's cost during those years. Labrador's office said the vast majority of the money is meant to go directly to the individuals, businesses and agencies that paid the inflated prices.
In other words, the payouts are designed to flow back to whoever absorbed the alleged overcharges, from Idaho families at the pharmacy counter to the small businesses and public agencies that helped cover the bills.
How Idahoans can file a claim
The full list of covered drugs and the claim form are posted on the coalition's claims website, AGGenericDrugs.com. People can also check eligibility or request a paper form by calling the toll-free line at 1-866-290-0182. Consumers have until March 8, 2027, to file, according to the coalition.
Records such as pharmacy printouts or insurance statements can help, but the claims administrator decides what proof is required. No one has said yet how big individual payments will be. That depends on the court, on how many valid claims are filed and on how each state divides its share.
Filing is free through the official website and phone line, so a request for a fee to file on someone's behalf is a red flag. The case is about pricing, not safety. There is no recall, and nobody should stop taking a prescribed medication because of it.
What happens next in court
The settlements still need final approval from the federal court in Hartford, and no payments go out until that happens. The broader fight is far from finished. The case the states plan to try first covers about 80 mostly topical generics with billions of dollars in U.S. sales. It names 26 companies and 10 individuals, and trial is set for February 2027 in Hartford.
Sandoz has also agreed to cooperate with the states, joining the five companies that settled before it. Two former Heritage executives and six other industry executives have settled as well and are helping the states build their cases. Labrador said Idaho will keep going after the corporate defendants in what he called an "illegal scheme that harms our families."
For Idaho families and small businesses, the next step is simple: check the drug list, dig out old pharmacy records and file before the deadline.