Sun Pharma’s two US arms to pay $85 mn in settlement pacts over antritrust litigation

Sun Pharma Ltd today informed the stock exchanges that its two US-based subsidiaries have signed settlement agreements in generic pharmaceuticals pricing antitrust litigation.

The two units have signed settlement agreements with the Direct Purchaser Plaintiffs in the In re Generic Pharmaceuticals Pricing Antitrust Litigation that has been taking place in the US for some time.

Under the terms of the settlement agreements, the subsidiaries will make an aggregate payment amounting to a combined total of $85 million in exchange for a full release of all claims asserted against them.

The settlement payment amounts will be reduced by $10 million if the direct purchasers that opt out of the putative class collectively account for 20% or more of Taro’s and SPII’s aggregate dollar sales of the generic pharmaceutical products at issue in the direct purchaser action.

The full amount of the payments under the settlement agreements have already been provided for in Sun Pharma’s prior consolidated financial results.

The settlement agreements were entered into without admission of any wrongdoing in the direct purchaser action.

Sun Pharma said the settlement agreements are subject to court approval, adding that if the court preliminarily approves the settlements, the agreements provide for a period of time during which, class members will be notified of the settlements and given an opportunity to opt out of the class, object to the settlements, or file a claim to receive a settlement payment.

If the court grants final approval of the settlements, the release will be effective as to all class members who do not validly opt out of the class, regardless of whether they filed a claim form and received a payment, Sun Pharma said.

On Thursday’s Muhoorat trading Sun Pharma shares were down over 2% to close at ₹797 on NSE.

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