Novolog and Pharma Giants Reach 5 Million NIS Class-Action Settlement

Novolog and nine international pharmaceutical giants have agreed to a 5 million NIS settlement in a class-action lawsuit concerning severe medicine supply disruptions. The legal dispute, which concluded following mediation, addresses failures during the implementation of an advanced SAP enterprise resource planning system that caused delivery delays between January and March 2025.

Settlement Structure and Distribution

Central District Court Judge Halit Silesh approved the settlement agreement, noting that the disruptions stemmed from a completed software migration rather than ongoing operational negligence. Because direct identification of affected patients was unfeasible due to privacy laws and complex distribution chains, the financial compensation is structured around public and patient welfare.

Out of the total 5 million NIS, 3.5 million NIS will be transferred to the official state fund for managing class-action remedies. The remaining 1.5 million NIS will be allocated as 5,000 vouchers worth 300 NIS each for complementary medical treatments, distributed through the Israeli Diabetes Association, Chaverim L'Refuah, and Kav LeChaim.

Attorney Shalom Even, who represented the plaintiffs, welcomed the resolution:

"Regular medicine supply is an essential public need of the highest order. This settlement demonstrates the power of class actions to deliver meaningful public benefits efficiently."

The defendant companies denied any wrongdoing or legal liability, settling the matter without admitting fault.