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AstraZeneca Agrees to $50.9 Million Settlement in Antitrust Case Over Schizophrenia Drug

By  |  June 1, 2025

A class action lawsuit accusing AstraZeneca of delaying a lower-cost generic version of its schizophrenia drug Seroquel XR has led to a $50.9 million settlement agreement, according to Reuters.

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    The preliminary settlement was filed in the U.S. District Court for the District of Delaware and awaits final approval by Judge Colm Connolly. The case centers around allegations that AstraZeneca and Handa Pharmaceuticals conspired to delay the release of a generic version of Seroquel XR, which is prescribed for schizophrenia and bipolar disorder. Plaintiffs say this maneuver caused them to pay inflated prices during the class period, which spans from 2015 to 2017.

    The plaintiffs, including Smith Drug Co. and KPH Healthcare Services, are among a group of drug purchasers who claim the delayed entry of a generic alternative led to anti-competitive pricing. Handa has agreed to contribute $494,000 toward the settlement, per Reuters.

    Both AstraZeneca and Handa have denied any wrongdoing but stated that the agreement allows them to avoid the costs and burdens of a lengthy trial, which had been scheduled to begin on May 5.

    Related: AstraZeneca Accused of Stifling Biosimilar Competition for Rare Disease Drug

    Attorneys representing the plaintiffs described the $50.9 million agreement as an “outstanding” result for the impacted drug purchasers. Legal representatives plan to request up to 36% of the total settlement fund—roughly $18.5 million—as attorney fees.

    According to Reuters, Seroquel once generated more than $5.3 billion annually in global sales, making it one of AstraZeneca’s top-selling products during its peak.

    This is not the first legal challenge AstraZeneca has faced over its marketing and sales practices related to Seroquel. In 2010, the company agreed to pay $520 million to resolve U.S. government claims that it had promoted the drug for uses not approved by regulators. A year later, it paid $68.5 million to settle similar allegations brought by U.S. states.

    The current case is In re: Seroquel XR (Extended Release Quetiapine Fumarate) Antitrust Litigation, No. 1:20-cv-01076-CFC, in the U.S. District Court for the District of Delaware.

    Source: Reuters