In Federal Trade Commission v. Actavis, Inc., No. 12-416, 2013 U.S. LEXIS 4545 (U.S. June 17, 2013), the U.S. Supreme Court reversed the Eleventh Circuit decision in FTC v. Watson Pharmaceuticals, Inc., 677 F.3d 1298 (2012), and announced that the antitrust "rule of reason" applies to the evaluation of "reverse payments" made in the context of patent settlements between pharmaceutical patent holders and generic drug manufacturers seeking approval of Abbreviated New Drug Applications (ANDAs) from the FDA.

In this 5 – 3 decision, authored by Justice Breyer and joined by Justices Kennedy, Ginsburg, Kagan, and Sotomayor, the Supreme Court rejected both the "scope of the patent" standard applied by the Eleventh Circuit and the "presumptively unlawful" standard advocated by the FTC.