District Courts Grapple With High Court's Actavis Ruling

Law360, New York (March 24, 2014, 11:52 AM EDT) -- In Federal Trade Commission v. Actavis Inc., 570 U.S. __, 133 S. Ct. 2223 (June 17, 2013), the U.S. Supreme Court instructed lower courts to apply antitrust law's rule-of-reason test to so-called reverse payment cases. The court offered limited direction, preferring to "leave to the lower courts the structuring of the present rule of reason." The court has been criticized for failing to provide more complete guidance. Eight months later, three district courts have looked to Actavis for guidance — and even before reaching the analytical framework, they have reached conflicting interpretations of the definition of "reverse payment."...

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