"Pay For Delay" Scheme, Illicit Payoffs Alleged in Loestrin 24 Class Action Lawsuit

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Doyle Lowther LLP

Jul 28, 2013, 03:00 ET

San Diego, CA (PRWEB) July 28, 2013 -- A class action lawsuit filed in district court alleges Loestrin 24 manufacturer entered into bogus settlements with generic drug makers "to prevent generic competition from entering the market," according to the publicly filed complaint, to prevent consumers from getting cheaper generic versions of Loestrin.

Alleging defendants "gamed the system," the complaint alleges Loestrin's manufacturer used a "pay-for-delay" scheme by suing generic Loestrin competitors. "These suits were used solely as a means to delay the onset of generic competition. Under the Hatch-Waxman Act . . . the mere filing of these lawsuits prevented the FDA from approving the generic drug for 30 months, regardless of the merits of the lawsuit," the complaint alleges.

The complaint alleges Loestrin's manufacturer "knew it would almost certainly lose the patent cases if litigated to completion," and thus it "entered into an unlawful and anti-competitive 'pay-for-delay' or 'reverse payment' agreement," which delayed entry of generic Loestrin into the market, "just six months" before the Loestrin patent expired.

The complaint alleges "brand name manufacturers frequently try to obstruct generic competition and preserve monopoly profits," which consumers are now challenging in this antitrust class action lawsuit. The litigation was filed in federal court, O'Donnell v. Warner Chilcott et al., Case. No. 2:13-cv-02945-CCC-JAD (D.N.J. May 7, 2013), though multiple cases have now been filed and they are likely to be consolidated in another district.

If you have purchased Loestrin, or purchased Loestrin on or after September 2009, or otherwise believe you have not been treated fairly, we would like to discuss your experience. Please submit a contact form to Doyle Lowther LLP for a free and confidential analysis, or call Doyle Lowther toll-free at 1-888-933-5770.

John Lowther, Doyle Lowther LLP, (888) 933-5770, [email protected]