Calif. High Court OKs Pay-For-Delay Challenges

Law360, New York (May 7, 2015, 2:03 PM EDT) -- The California Supreme Court ruled Thursday that so-called pay-for-delay pharmaceutical patent settlements can be challenged under state antitrust law, reviving drug buyers' claims that Bayer Corp. illegally paid generic manufacturers $400 million to delay launching their own version of blockbuster antibiotic Cipro.

The state's highest court concluded that the U.S. Supreme Court's landmark decision allowing Hatch-Waxman Act payments to be challenged under federal antitrust law also supported permitting similar lawsuits under California's competition laws.

"Under federal antitrust law, these settlements are not immune from scrutiny, even...
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