1st Circ. Revives Loestrin Pay-For-Delay Suit

Law360, Los Angeles (February 22, 2016, 10:39 PM EST) -- Warner Chilcott will have to face claims it paid drugmakers to delay producing a generic version of its contraceptive Loestrin in multidistrict litigation after the First Circuit on Monday found that noncash settlements can be subject to antitrust scrutiny.

Wholesalers, end payors and others alleged that Warner Chilcott Co.'s agreement with Watson Pharmaceuticals Inc. — both of which are now owned by Actavis Inc. — and another with Lupin Pharmaceuticals Inc. amounted to a scheme to keep generic versions of the drug out of the market.

U.S. District Judge William E. Smith in September 2014 tossed their claims, saying that under...

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