Sun Pharma Limited today informed stock exchanges that two of its US-based subsidiaries have signed settlement agreements in the Generic Pharmaceuticals Pricing Antitrust Litigation.
Both the entities have signed settlement agreements with the direct buyer plaintiffs in the Re-Generic Pharmaceuticals Pricing Antitrust Litigation in the US for some time now.
Under the terms of the settlement agreements, the subsidiaries will pay a total of $85 million in exchange for the full release of all claims made against them.
If the Direct Buyers who exit the Putative Class collectively account for 20% or more of Taro and SPII’s total dollar sales of the generic drug products at issue in the Direct Buyer action, the settlement payment amount will decrease by $10 million.
Sun Pharma’s pre-consolidated financial results have already provided for the full amount of payments under settlement agreements.
Compromise agreements were made without admitting any wrongdoing in direct buyer action.
Sun Pharma said settlement agreements are subject to court approval, adding that if the court initially approves the settlement, the agreements provide for a period of time during which class members will be able to make settlements. will be informed and given an opportunity to exit. Class, object to settlements, or file a claim to receive settlement payments.
Sun Pharma said that if the court grants final approval of the settlement, the release would be effective for all class members who did not lawfully exit the class, even if they had filed a claim form and received payment. .
Sun Pharma shares fell over 2% in Thursday’s Muhurta trading. closed on ₹797 on NSE.
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