This settlement covered pharmacies, wholesalers, and distributors that bought generic drugs directly from the manufacturers — consumers may still qualify under the separate end-payer settlements.
What Was the Generic Drugs Settlement About?
Sun Pharmaceutical Industries and Taro Pharmaceuticals agreed to settle direct purchaser claims in In re: Generic Pharmaceuticals Pricing Antitrust Litigation (MDL 2724), the sprawling federal case alleging that generic drug manufacturers coordinated to raise, fix, or maintain the prices of common generic drugs such as amphetamine, amoxicillin, gabapentin, and baclofen. The manufacturers did not admit any wrongdoing.The settlement was announced at $85 million — $17,357,000 from Sun and $67,643,000 from Taro. When the court granted final approval on March 9, 2023, the fund was reduced by $10 million, to $75 million, to account for direct purchasers that opted out of the deal to pursue their own claims.
2025–2026 Update: Payments Distributed
The claim window closed on May 6, 2024. On February 3, 2025, the court entered an order authorizing distribution of the Sun-Taro settlement funds, and payments went out to settlement class members with approved claims on a pro-rata basis — those with larger qualifying purchase volumes received proportionally larger shares. No new claims can be filed in this settlement.The broader MDL 2724 litigation continues against other, non-settling manufacturers, and additional settlements have been reached in other tracks of the case. Consumers and health plans — who were not part of this direct purchaser class — are covered by the separate generic drugs end-payer settlements, which have their own settlement website and claim process. For a map of every settlement program in the generic drugs price-fixing litigation, see our complete guide to the generic drugs settlements.
Who Qualified?
The settlement class covered all persons and entities that directly purchased one or more of the named generic drugs from one or more defendant manufacturers in the United States and its territories at any time from May 1, 2009 through December 31, 2019. In practice this meant pharmacies, wholesalers, and distributors buying straight from the manufacturers — not consumers filling prescriptions at a pharmacy.The named drugs included, among others: valsartan, verapamil, warfarin, tolterodine, theophylline, triamcinolone, propranolol, dextroamphetamine, baclofen, benazepril, cimetidine, divalproex, enalapril, perphenazine, potassium chloride, metformin, fluocinonide, levothyroxine, glimepiride, and gabapentin. The full drug and manufacturer list appeared on pages 4–10 of the claim form on the settlement website.
How Payments Were Calculated
The fund was divided among settlement class members who submitted valid and timely claim forms on a proportional basis, according to each claimant's share of qualifying direct purchases of the named generic drugs during the class period. The minimum payment was estimated at $25 per claim. Claims were filed by mail; class members that did not receive a claim form by email had to document their direct purchases with records such as receipts or prescription orders.Frequently Asked Questions
Is the generic drugs direct purchaser settlement still open?
No. The claim deadline for the Sun and Taro direct purchaser settlement was May 6, 2024, and it has passed. The court authorized distribution of the settlement funds on February 3, 2025, and payments have gone out to approved claimants.
How much was the Sun and Taro settlement?
The settlement was originally announced at $85 million — $17,357,000 from Sun Pharmaceutical Industries and $67,643,000 from Taro Pharmaceuticals. The court's March 9, 2023 final approval reflected a $10 million reduction, to $75 million, to account for direct purchasers that opted out of the deal.
Who was eligible for this settlement?
Persons and entities that directly purchased one or more of the named generic drugs from a defendant manufacturer in the United States and its territories between May 1, 2009 and December 31, 2019 — primarily pharmacies, wholesalers, and distributors. Ordinary consumers who bought the drugs at a pharmacy were not part of this direct purchaser class.
I'm a consumer who paid for generic drugs — can I still file a claim?
Possibly, but under different settlements. Consumers and health plans are covered by the separate end-payer settlements in the same generic drugs price-fixing litigation, which have their own settlement website, notices, and claim process. See our generic drugs end-payer settlement page for the current status.
When will generic drug settlement checks be mailed?
For this direct purchaser settlement, the court authorized distribution on February 3, 2025, and payments have already been issued to approved claimants. The separate end-payer settlements for consumers and health plans follow their own timelines — payments there go out only after each settlement's claim window closes and the court approves distribution. Check the official end-payer settlement website or our end-payer settlement page for current timing.
What was the lawsuit about?
The class action, part of In re: Generic Pharmaceuticals Pricing Antitrust Litigation (MDL 2724), alleged that generic drug manufacturers violated antitrust laws by coordinating to raise, fix, or maintain the prices of common generic drugs such as amphetamine, amoxicillin, gabapentin, and baclofen. Sun and Taro did not admit any wrongdoing and settled to resolve the claims against them.
Sources
- Generic Drugs Direct Purchaser Settlement — official Sun/Taro settlement page
- Official long-form notice — Sun/Taro direct purchaser settlement (PDF)
- Fierce Pharma — Sun and Taro settle direct purchaser price-fixing claims for $75M
- U.S. District Court, E.D. Pa. — In re: Generic Pharmaceuticals Pricing Antitrust Litigation (MDL 2724)
