Settlement Agreement: Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015,
GLENMARK · price
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Glenmark Pharmaceuticals' US subsidiary (Glenmark Pharmaceuticals Inc.) has agreed to a $29.628 million settlement with 46 state attorneys general to resolve antitrust and consumer protection lawsuits. The lawsuits, pending since 2016, alleged price-fixing and market allocation of generic drugs in the US. Over 35 complaints were consolidated in the Eastern District of Pennsylvania, with three complaints transferred to Connecticut in 2024. The settlement will be paid in annual installments over 5 years and is subject to court approval. Glenmark USA denies all allegations and states the settlement is not an admission of liability. The company says the full amount has been provided for in its financials and will not significantly impact its financial position.
The settlement resolves a long-standing legal dispute without admission of guilt, with minimal financial impact since provisions have already been made. This removes uncertainty around potential larger liabilities and is a neutral-to-slightly-positive development for shareholders.