What’s Ahead in 2021 for Reverse-Payment Settlement Litigation

January 8, 2021Bloomberg Law

Reverse-payment or “pay-for-delay” lawsuits arise when parties settle patent litigation under the Hatch-Waxman Act with an alleged agreement under which a brand-name drug patent holder compensates a generic drug maker to end or avoid litigation.

In its decision in FTC v. Actavis, the U.S. Supreme Court made clear that a “large and unjustified” payment as part of a Hatch-Waxman settlement risks competitive harm to the market, and that such settlements are subject to rule-of-reason analysis.

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