Glenmark USA to Pay $29.628 Million in Settlement Over Anti-trust Lawsuits
Glenmark Pharmaceuticals Limited announced details regarding a settlement reached by its subsidiary, Glenmark Pharmaceuticals Inc., USA (Glenmark USA), to resolve multiple antitrust and consumer protection lawsuits.The litigation centered on allegations of price-fixing, market allocation, and other anti-competitive conduct related to generic pharmaceutical products in the United States. Since 2016, Glenmark USA faced over 35 complaints, alleging violations of federal antitrust laws concerning drug pricing. These complaints included classes of direct purchasers, end-payers, and indirect purchasers, as well as actions filed by numerous private plaintiffs and 46 state attorneys general. The allegations included both individual drug-specific conspiracies and an overarching conspiracy among manufacturers of generic drugs in the U.S.
To resolve this dispute and mitigate uncertainty, Glenmark USA has agreed to enter into a settlement agreement with the state attorneys general. The total settlement amount is stipulated as $29.628 million ($29,628,000).
The payments under the settlement will be disbursed in annual installments over a period of five years, pending final approval by the court overseeing the litigation.
Glenmark Pharmaceuticals Limited noted that the full amount of payments required under the settlement agreements has already been provided for in the Company's financials. Furthermore, the company stated that this settlement is not expected to have a significant impact on the overall financial position of the Company. Glenmark USA has reiterated that it denies all allegations made against it, and the settlement does not constitute any admission of liability or wrongdoing.
GLENMARK Stock Price Movement
Glenmark Pharmaceuticals Limited shed 5.94% on Friday, closing its session at ₹2259.1 after falling ₹142.20. The decline occurred amidst notable selling pressure, as the stock finished its trading on a high volume of 1.59 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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