Pfizer Unit's Skelaxin Pay-For-Delay Deal Illegal: Suit

Law360, New York (January 4, 2012, 8:02 PM EST) -- Two pharmacies hit Pfizer Inc. unit King Pharmaceuticals Inc. with a proposed competition class action Wednesday in Tennessee, alleging that they paid inflated prices for the muscle relaxant Skelaxin because King reached an illegal agreement to keep generic versions off the market.

The suit in federal court alleges that Bristol, Tenn.-based King violated the Tennessee Trade Practices Act and received unjust enrichment by striking a pay-for-delay settlement with generics maker Mutual Pharmaceutical Co. Inc.

Under the deal to end a patent dispute with Mutual, which is...
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