Justices say pay-for-delay deals with generic drug makers subject to antitrust 'rule of reason'

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In Federal Trade Commission v. Actavis, the Supreme Court held 5-3 that trial courts must apply the traditional "rule of reason" to determine whether reverse-payment settlement agreements between Pharmaceutical Brand companies and generic companies violate the antitrust laws. The Actavis court thus settled on a case-by-case approach rather than either blessing or condemning the challenged agreements.

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