WASHINGTON — The Justice Department said Monday that pharmaceutical company Sandoz Inc. will pay a $195 million penalty to resolve criminal charges of conspiring to fix prices and rig bids for generic drugs.
As part of the agreement, the generic pharmaceutical company headquartered in New Jersey will admit guilt and pay the penalty, which the Justice Department says is the largest fine the department had levied in a domestic antitrust case.
Officials said the company had conspired for years with other drug manufacturers and their executives to raise prices for medication.
Under the agreement, criminal prosecution will be deferred for three years. The company also agreed to
“Today’s resolution, with one of the largest manufacturers of generic drugs, is a significant step toward ensuring that prices for generic drugs are set by competition, not collusion, and rooting out antitrust crimes that cheated American purchasers of vital medicines,” said Assistant Attorney General Makan Delrahim.
The Justice Department said several other pharmaceutical executives have pleaded guilty in antitrust cases, including a former Sandoz executive. Another former company executive was indicted last month and is awaiting trial.
Marcy Gordon, The Associated Press
