Supreme Court Hears Arguments in FTC v. Actavis

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On March 25, 2013, the Supreme Court heard oral arguments in Federal Trade Commission v. Actavis, a case involving a circuit split regarding “pay for delay” settlements within the pharmaceutical industry.

The Supreme Court seeks to resolve a split among the circuits as to whether a brand name drug manufacturer acts illegally by paying a competing generic drug manufacturer to stay out of the market for a specified number of years. The Eleventh Circuit favors a “scope-of-the-patent” rule in analyzing pay for delay settlements, while the Third Circuit has suggested that a “quick look” rule is the better option.

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