Summary Judgment for Defendants Denied in Loestrin Antitrust Case

In a recent Opinion and Order, Chief Judge William E. Smith of the District of Rhode Island denied summary judgment for Defendants Warner Chilcott and Watson (now part of Allergan) in an antitrust case alleging that Defendants conspired to delay market entry of less expensive generic Loestrin 24.  

Plaintiffs’ allegations include patent fraud, a pay-for-delay deal, and a product hop from Loestrin 24 to Minastrin 24.  As the Court summarized it, “Plaintiffs’ case . . . is simply that generics should have been available for them to purchase earlier.  And indeed they would have been but for Defendants’ allegedly anticompetitive conduct, including:  protecting Loestrin with a patent Warner Chilcott knew was invalid; filing sham patent infringement lawsuits against prospective generic entrants; settling those suits to split monopoly profits; and formulating a new drug (Minastrin) only to limit generic substitution.”  Op. at 2-3 (citation omitted). 

The case started with three Plaintiff groups:  a class of direct purchasers (i.e. pharmaceutical wholesalers), a class of end payors (i.e. insurers), and certain retailers such as CVS that opted out of the direct purchaser class.  The direct purchasers, represented by Faruqi & Faruqi among others, recently executed a memorandum of understanding to settle their claims with Defendants. 

About Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour, personal injury and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Delaware, Georgia and Pennsylvania.

Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.

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About David Calvello

David Calvello is a Senior Associate in Faruqi & Faruqi, LLP's New York office. He mainly practices in the area of antitrust litigation with a focus on competition in the pharmaceutical industry. He has worked on multiple cases that resulted in significant settlements, including In re Lidoderm Antitrust Litigation, 14-md-02521 (N.D. Cal.) ($166M settlement) and In re Solodyn Antitrust Litigation, 14-md-02503 (D. Mass.) ($76M settlement).

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Senior Associate at Faruqi & Faruqi, LLP

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