The US Supreme Court holds that reverse payments settlements diminishes competition (Actavis)

On Monday, June 17, the Supreme Court in FTC v. Actavis, Inc., 570 U.S. __ (2013) (“FTC Slip Op.”), addressed whether “reverse payment” settlements of Hatch-Waxman ANDA patent litigation “unreasonably diminish competition in violation of the antitrust laws.” FTC Slip Op. at 1. In a 5-3 decision, the Court held that such settlements “can sometimes violate the antitrust laws” and therefore must be judged under a traditional rule-of-reason analysis. See id. at 2, 20-21 (“the

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