September 12, 2018

A California federal judge on Wednesday approved “excellent” settlements ending claims that Teikoku, Endo and Actavis violated antitrust laws by stalling the release of a generic form of the Lidoderm pain patch, finalizing a $104.75 million deal with end payors and a $166 million deal with direct purchasers, including a combined $85.6 million in attorneys’ fees.

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The litigation, consolidated in 2014, centered on claims that Teikoku Pharma USA Inc. and Endo Pharmaceuticals Inc. resolved an underlying patent suit against Watson Laboratories Inc. — which acquired Actavis Group, became Actavis PLC, then acquired Allergan Inc. and became Allergan PLC — with a $266 million deal to stymie a generic version of the blockbuster anesthetic.

Purchasers asserted that the agreements amounted to illegal pay-for-delay arrangements that ran afoul of competition law.

The settlements cover anyone who purchased brand or generic Lidoderm between August 2012 and May 2014, when an authorized generic version finally came online after having allegedly been delayed by seven and a half months.

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Judge Orrick capped off the hearing by telling all the attorneys, “It has been a pleasure to have read what you write and listen to what you say. For me, this was a fascinating case and it was very well-litigated by all.”

The end payor plaintiffs are represented by Girard Gibbs LLP, Cohen Milstein Sellers & Toll PLLC, and several other plaintiffs firms.

The complete article can be accessed here.