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In re Effexor XR Antitrust Litigation, 3:11-cv-05479 (PGS/LHG) (D.N.J.)

We represent direct purchasers of the brand name drug Effexor XR who were prevented from substituting less expensive generic versions of Effexor XR for their purchases of the expensive brand name drug because of Defendants’ scheme to monopolize the market. This scheme involved several alleged illegal acts, including (1) committing fraud in order to secure a patent on Effexor XR (known as “Walker Process” fraud); and (2) the branded drug manufacturer making a large payment to a generic competitor in order to induce the generic to delay entering the market (known as a “reverse payment”).

The district court denied Defendants’ motion to dismiss Plaintiffs’ allegations of Walker Process fraud, and discovery is proceeding on those allegations. The court, however, dismissed the reverse payment allegations. Plaintiffs have appealed that ruling. The appeal is currently pending.

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