Reverse Payment Settlements in the United States and Europe: Moving Toward An Effects-Based Approach

David Tayar, William Rooney, Agathe Richard, Sep 30, 2013

After more than a decade of debate and complex litigation on “reverse payment” settlements, the Supreme Court ruled on the issue in Federal Trade Commission v. Actavis, Inc. The pharmaceutical industry now asks: So, are those settlements lawful? The Actavis Court’s answer: “Maybe . . . sometimes.”

The lower courts are now commissioned to apply the decades-old rule of reason to reverse payment settlements and