AAI Urges California Supreme Court to Review Pay-for-Delay Ruling (In re Cipro Cases)

In an amicus letter filed with the California Supreme Court, AAI urged the Court to review and reject a decision of the California Court of Appeal that followed an unduly permissive standard under California law for evaluating so-called “pay for delay” (or “reverse payment”) settlements, i.e., settlements of patent infringement claims brought by branded drug manufacturers against generic competitors pursuant to which the branded drug manufacturer pays the generic to delay entry into the market. AAI cited a litany of studies and commentary demonstrating that such settlements are frequently anticompetitive, very costly to consumers, and should be subject to meaningful antitrust scrutiny.

The amicus letter was written by University of San Francisco Law Professor and AAI Senior Fellow Josh Davis.