AAM Sues Over California ‘Pay-For-Delay’ Law
Calls The California Law ‘Bad Policy’ And ‘Unconstitutional’
The AAM has filed a lawsuit seeking an injunction to prevent the implementation of Californian legislation banning ‘pay-for-delay’ deals. The law is due to come into effect in January next year.
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As the AAM failed to demonstrate a “concrete or imminent” injury to its member companies, a US appeals court has rejected the agency’s challenge to the Californian law banning “pay-for-delay” deals.
Responding to a California district court’s denial of an injunction to prevent the enactment of the US state’s legislation banning ‘pay-for-delay’ settlement deals, the AAM has confirmed plans to immediately appeal the decision.
A California Court has secured four major settlements worth $70m with pharmaceutical companies over allegations of entering into collusive pay-for-delay agreements, including two with Teva.