Pay-For-Delay Pharmaceutical Settlements

The Joseph Saveri Law Firm is actively investigating several unlawful pay-for-delay settlement agreements entered by pharmaceutical drug companies to delay and restrict competition. Under these agreements, in the context of a patent dispute, a brand drug manufacturer typically pays some form of consideration—cash or non-cash—to a generic drug manufacturer in exchange for the latter’s promise not to launch a generic version of the drug. Both the United States Supreme Court and the California Supreme Court have recently decided that such agreements may violate the antitrust laws as they tend to harm competition and force consumers to pay higher pharmaceutical drug prices.

The firm currently serves as plaintiffs’ counsel in a class action against manufacturers of Cipro and as liaison counsel in a class action against manufacturers of Lidoderm. In addition, the firm is investigating claims against brand and generic manufacturers of Opana ER and Aggrenox, among others, for conspiring to keep generic versions of these drugs off the market and to prop up brand prices. Victims of this conduct—such as pharmaceutical drug consumers and third-party payors—are encouraged to contact the firm to discuss their experience and legal rights.