In Federal Trade Commission v. Actavis Inc., the U.S. Supreme Court for the first time subjected pharmaceutical patent infringement suit settlements to scrutiny under the antitrust laws. Specifically, the Court held that large and unjustified payments made by the brand name drug patent holder to the alleged infringer to settle litigation will subject the settlement to antitrust scrutiny under the rule of reason. The Court provided little explanation of its ruling, however, leaving to lower courts to determine where to draw the line between presumptively lawful settlements and those that merit a closer look. ...

Related Practice

Antitrust