How is Novartis connected to the generic drug price-fixing scandal?
Through Sandoz, its generics division until 2023, which agreed to a $195 million criminal penalty for price-fixing — and was later accused by state attorneys general of being shielded from liability through a fraudulent asset transfer before the spin-off.
Through Sandoz, which was Novartis's generics division until it was spun off in 2023. In March 2020 Sandoz agreed to a $195 million criminal penalty to resolve federal charges of price-fixing, bid-rigging and market allocation for generic drugs, including collusion with Teva on medicines for brain cancer, cystic fibrosis and hypertension.
State attorneys general went further: New Hampshire's attorney general announced a complaint alleging that Novartis took steps to fraudulently transfer and drain assets from Sandoz and spun it off to shield itself from liability. In August 2026 Sandoz reached a settlement in principle of about $469 million with state attorneys general that also resolves the allegations against Novartis AG, Sandoz AG and Sandoz Group AG, including the fraudulent transfer claims.