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American Sales Company VS Pfizer

Basic Information:
  • Case No.: 2:14-cv-0361
  • Plaintiffs: American Sales Company LLC, Cesar Castillo Inc, Rochester Drug Co-Operative Inc and many more. (The Direct Purchasers)  
  • Defendant: Pfizer.
  • Judge: Arenda L. Wright Allen
  • Court: United States District Court for the Eastern District of Virginia.
  • Action: Anti-Trust Action
  • Product: Celebrex (Celecoxib) 

Remark:
  • To resolve allegations over Pfizer's use of fraudulent patent to delay generic competition for its drug Celecoxib (Celebrex).
  • The lawsuit, brought by 32 direct purchasers of Celebrex in April and certified a class action lawsuit in August. Direct purchasers claimed Pfizer attempted to revive its invalidated patent (US5760068) by making material misrepresentations to the USPTO. As result, the USPTO granted Pfizer a new patent (USRE44048) based on this reportedly inaccurate information.
  • The plaintiff allege Pfizer filed a lawsuit against five generic manufacturers for infringing upon the fraudulently obtained patent to maintain monopoly over the drug.
  • The 32 direct purchasers argued Pfizer's move to delay generic competition of the drug cost them hundreds of millions.
  • Pfizer and the direct purchasers entered into the settlement on 22nd, Nov, 2017 and agree to pay $94 million to plaintiffs.
  • The agreement still needs official court approval.
Outcome:
  • Settled; Pfizer agree to pay $94 million to plaintiffs.

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