Chewy reaches settlement in Elanco flea and tick antitrust litigation

Chewy has reached a settlement with consumers in a high-stakes antitrust lawsuit involving Elanco Animal Health Inc. and several of the nation’s largest pet supply retailers. In a notice filed on Thursday, February 12, 2026, in Indiana federal court, Chewy announced it is withdrawing its motion to compel arbitration and its support for a pending motion to dismiss. The move effectively removes Chewy from the litigation, which accuses Elanco of paying retailers, including Petco, PetSmart, PetMed Express, and Petsense, to boycott generic versions of the popular flea and tick medication, Advantix.¹

"This withdrawal is made pursuant to and in accordance with the parties' settlement term sheet, executed on February 12, 2026, which memorializes their agreement to resolve all claims asserted in this matter," the notice stated. While the specific financial terms of the deal were not immediately made available, the litigation will continue against Elanco and the remaining retail defendants.

The lawsuit, led by plaintiff Susan Kraus-Silfen, seeks to represent a class of consumers who purchased Advantix at prices allegedly inflated by anticompetitive agreements. The core of the complaint centers on imidacloprid, the active ingredient in Advantix.²

Kraus-Silfen alleges that Elanco acted as a "hub," while the retailers served as "spokes" in a coordinated effort to block cheaper generic alternatives from entering the market.³ According to the suit, Elanco offered retailers higher profit margins in exchange for their refusal to stock rival products.

"In exchange for entering the deal, Elanco shared the fruits of its higher, and illegal, profit margins with the retailer defendants," Kraus-Silfen stated in a June 2025 opposition brief.⁴ She argued that the retailers only acted with the assurance that their competitors would also refrain from stocking generics, noting that "their arrangements with Elanco would unravel if any of them jumped ship."

The current case mirrors a long-running legal saga surrounding Advantix. In 2019, generic manufacturer Tevra Brands LLC sued Bayer Healthcare, which was acquired by Elanco that same year in a $7.6 billion deal alleging similar anticompetitive conduct.²

However, a California federal jury cleared Bayer of those claims in 2024. In that instance, the jury refused to define a narrow market specifically for topical flea and tick prevention and therefore did not reach a verdict on whether Bayer maintained an illegal monopoly or engaged in "de facto" exclusive dealing contracts.²

Despite that precedent, the current consumer class action gained momentum in mid-2025. While the retailers argued they made "unilateral business decisions" to carry only brand-name Advantix, the plaintiffs insist the lack of generic availability across all major platforms points to a broader conspiracy. US District Judge James Patrick Hanlon is currently overseeing the proceedings. He is also managing a separate, related consumer case that names only Elanco as a defendant. While Judge Hanlon dismissed federal antitrust claims in that secondary case last October, he allowed state law claims to move forward.

Editor’s note: As of February 24, 2026, Chewy has declined to comment on this matter. dvm360 has also reached out to Elanco Animal Health for comment, who has not responded as of February 27, 2026.

References

1. Perlman M. Chewy Settles Antitrust Claims Over Elanco Flea & Tick Meds. Law360. February 13, 2026. Accessed February 20, 2026. https://www.law360.com/articles/2441704/
2. Atkins D. Calif. Jury Clears Bayer In Flea And Tick Med Antitrust Suit. Law360. August 1, 2024. Accessed February 20, 2026. https://www.law360.com/articles/1864217
3. Koenig B. Dog Owner Defends Tick Meds Suit Against Elanco, Retailers. June 10, 2025. Accessed February 20, 2026. https://www.law360.com/articles/2351495
4. Kraus-Silfen v Elanco Animal Health, Inc, No. 1:25-cv-00168-JPH-MJD (SD Ind 2025). Accessed February 20, 2026. https://assets.law360news.com/2351000/2351495/https-ecf-insd-uscourts-gov-doc1-073111098241.pdf