Bayer Settles Cipro Pay-For-Delay Suit for $74 Million

In In re: Cipro Cases I & II, Bayer Corp. has agreed to pay $74 million to settle a California consumer class action over its alleged pay-for-delay patent deals for the antibiotic Cipro.  The deal dismisses Bayer from a long-running antitrust suit over the nearly $400 million Bayer paid out in 1997 to end the generic-drug challenges to the Cipro patent.  Although Bayer has settled out of the case, the plaintiffs’ case against Barr Pharmaceuticals Inc. and several other generics companies will continue in the California Supreme Court, which is weighing whether the Hatch-Waxman Act settlements can be challenged under California’s antitrust law.  The settlement notes that the $74 million Bayer had to pay is only a partial payment of the plaintiffs’ claims and if the plaintiffs end up with at least $227 million in settlements from all defendants (including Bayer), by December 31, 2013, Bayer will have to pay out another $8 million.

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