The plaintiffs had alleged that the settlement unlawfully delayed generic competition and that, without the agreement, generic Lipitor would have entered the US market earlier.

The US Court of Appeals for the Third Circuit has now affirmed the District Court’s summary judgment in its entirety in favour of Sun Pharma and its subsidiaries, while also upholding the District Court’s denial of class certification to the plaintiffs.

'This decision represents a significant favourable development for the Company and its subsidiaries in the matter, and brings the litigation substantially to a close, subject to any further remedies that may be available to the plaintiffs under applicable law,' Sun Pharma said in a statement.

As per media reports, the ruling is significant because the litigation had remained a long-standing legal overhang following Sun Pharma’s acquisition of Ranbaxy in 2014.

The Third Circuit’s decision effectively removes the principal claims against Sun Pharma in this matter, the reports added.

Sun Pharmaceutical Industries is engaged in the business of manufacturing, developing and marketing a wide range of branded and generic formulations and active pharmaceutical ingredients (APIs). The company and its subsidiaries has various manufacturing facilities spread across the world, with trading and other incidental and related activities extending to the global market. It is the largest pharmaceutical company in India.

The company had reported a 27.04% jump in consolidated net profit to Rs 2,894.79 crore for the quarter ended 30 June 2026 (Q1 FY27), compared with Rs 2,278.63 crore in the corresponding quarter last year. Revenue from sales climbed 10.14% YoY to Rs 15,183.55 crore in Q1 FY27.

The scrip shed 0.58% to currently trade at Rs 1913.70 on the BSE.