Actavis Inc. (ACT) said Monday that the US Supreme Court has reversed the decision of the US Court of Appeals for the Eleventh Circuit, which had affirmed the District Court's ruling granting Actavis' motion to dismiss the Federal Trade Commission's lawsuit, FTC v. Actavis.
The Supreme Court's reversal was the result of a decision by a 5 to 3 vote. The Court rejected the FTC's proposed "quick look" approach and adopted the traditional "rule of reason" as the standard. Justice Alito did not take part in the decision. The case was remanded for further proceedings consistent with the opinion, and Actavis intends to defend its position.
"We are pleased that the Court rejected the FTC's proposed 'quick look' test, and did not rule that settlement agreements are presumptively unlawful. Rather, the Court has established that the 'rule of reason' be applied, and left it to the lower courts to determine if the benefits of the settlement outweigh harm to consumers," Actavis said.
"We believe this decision continues to provide for a lawful and legitimate pathway for resolving patent challenge litigation in a manner that is pro-competitive and beneficial to American consumers," the company added.
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