South Dakota wants its payout in another nationwide lawsuit against pharmaceutical giants accused of illegally pushing up the price of prescription drugs.
And the latest case against alleged overpricing could add to the tens of millions of dollars already marked for the state through settlements involving pharmaceutical companies.
The South Dakota Attorney General’s Office announced Thursday it has joined a coalition of states and territories seeking preliminary federal court approval of a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. over allegations that the companies conspired to inflate prices and restrict competition involving generic prescription drugs. Eligible South Dakotans who purchased certain generic drugs during the affected period could receive a portion of the settlement.
“These two generic drug manufacturers conspired to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs,” said Attorney General Marty Jackley. “South Dakota consumers were forced to pay extra, and they deserve to be compensated for their expenses.”
The settlement, announced in principle Aug. 3, calls for Sandoz to pay $400 million over seven years beginning in 2027. The agreement also requires approval from the participating states and territories and contains no admission of wrongdoing by Sandoz.
According to the Attorney General's Office, South Dakota's share of the settlement is $389,000, to be split between the South Dakota Medicaid Program, administered by the Department of Social Services, and the Attorney General's Antitrust Fund, which is administered by the court.
The Sandoz settlement is the latest in a series of multistate cases targeting alleged anticompetitive conduct in the generic drug industry. South Dakota also participated in a $39.1 million settlement with Apotex in 2025 and settlements totaling $17.85 million with Lannett and Bausch in February. In July, the state was awarded $18,011.65 from a $29.6 million settlement with Glenmark.
Litigation surrounding the nation's opioid epidemic has also generated tens of millions of dollars in settlements for South Dakota.
The state has obtained nearly $80 million in anticipated opioid settlements from pharmaceutical distributors McKesson, Cardinal Health and AmerisourceBergen, as well as Janssen, with payments designated for opioid abatement and remediation. A 2021 agreement involving those three distributors and Johnson & Johnson was valued at up to $26 billion nationally.
South Dakota's expected share was initially estimated at about $50 million over 17 years, depending on participation by states and local governments.
Drug settlements could also put money directly in the hands of South Dakotans as well.
South Dakotans who believe they were subjected to overpriced generic drugs between May 2009 and December 2019 might be eligible for compensation. The Attorney General's Office is directing consumers to the settlement claims website to determine eligibility and file a claim.
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