Reverse Payment Settlements: Presumptively Bad or Usually Acceptable?

Kyle Musgrove, Richard Ripley, Jun 27, 2012

In April 2012, the Federal Trade Commission (“FTC”) suffered yet another rebuke of what FTC Chair Jon Leibowitz has characterized as “one of the Commission’s top competition priorities,” i.e., stopping “reverse payment” settlements in drug patent litigation. The Eleventh Circuit’s decision in the AndroGel case presents an opportunity to review the concept of reverse payment settlements, the agency’s persistent condemnation of these agreements, the courts’ near-unanimous endorsement of the concept, and assess which side holds the better hand.

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