On March 23, 2022, Sun Pharmaceutical Industries Ltd. reached a $485 million settlement to resolve class action lawsuits that alleged its subsidiary, Ranbaxy, Inc., engaged in an anticompetitive scheme to delay the release of competitor’s generic drugs. The class action lawsuits started as five actions, which were consolidated in the United States District Court District of Massachusetts in 2019 and divided into two classes, direct purchaser plaintiffs (DPPs) and end-payor plaintiffs (EPPs).
The settlement stems from claims by generic drug buyers who claimed they were owed billions of dollars for being overcharged. DPPs include wholesalers and distributors and purchase generic drugs directly from drug manufacturers. EPPs are third-party payors that indirectly purchase and/or provide reimbursement for generic drugs at the end of the distribution chain from retailers and other intermediaries (such as health plans and insurance companies).