High court: FTC can challenge 'pay for delay' deals
Monday, June 17, 2013 2:38 PM
The U.S. Supreme Court ruled on Monday that the Federal Trade Commission can challenge deals brand-name drug companies make with generic rivals that keep cheaper products off the market, Reuters reported. In a 5-3 vote, with Justice Samuel Alito recused, the court handed a loss to the companies involved in a settlement it was examining. In the deals in question, which regulators have dubbed "pay-for-delay," brand-name manufacturers settle litigation by paying generic manufacturers to stay out of the market for a specified period. Federal and state regulators say the practice costs consumers, insurers and governments billions of dollars a year.