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Federal Trade Commission Statements Regarding First FTC Settlement Of Reverse Payment Claims Post-Actavis and Largest Ever Disgorgement Award

Richard Parker, Ted Hassi, Kenneth R. O’Rourke, and Anna Fabish, O’Melveny & Myers Memorandum, June 2015

See Kenneth R. O'Rourke's resume See Richard Parker's resume See Ted Hassi's resume See Anna Fabish's resume

The Federal Trade Commission (“FTC”) has reached a settlement resolving its claims that Cephalon, Inc. violated the antitrust laws by entering into reverse payment settlements to delay generic competition for Provigil. This is the first FTC settlement of a reverse payment case post-Actavis, and contains the largest disgorgement award in FTC history: $1.2 billion. The settlement, which was reached on the eve of trial, caps a lengthy litigation over Cephalon’s payments to four generic drug manufacturers. The Commission voted unanimously to approve the settlement, and it was filed with the court on May 28, 2015.

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