Florida, 33 States Settle Antitrust Lawsuit Against Barr Pharmaceuticals for $5.9 Million

Second company previously reached multistate settlement over allegations, bringing total to $11.4 million

February 27, 2008 -- TALLAHASSEE, FL – Florida Attorney General Bill McCollum today announced that Florida has joined 33 other states and the District of Columbia in a $5.9 million antitrust settlement with drug company Barr Pharmaceuticals. The agreement settles an antitrust lawsuit against the company which alleged Barr Pharmaceuticals and Warner Chilcott engaged in antitrust violations that prevented generic versions of a prescription oral contraceptive from reaching the marketplace. The Attorneys General settled the lawsuit against Warner Chilcott in 2007 for $5.5 million.

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“Our consumers deserve a fair and free marketplace, and we will continue enforcing that standard on their behalf,” said Attorney General McCollum.

According to the lawsuit, Ovcon has been sold as an oral contraceptive in the United States since 1976 and Warner Chilcott became the exclusive U.S. distributor of Ovcon in early 2000 and in early 2003. Barr publicly announced a generic version of Ovcon would be on the market by the end of that year. The lawsuit, filed in the U.S. District Court for the District of Columbia, alleged that after Barr exercised a $1 million-option agreement Warner Chilcott paid Barr $19 million in return for Barr agreeing not to bring its cheaper generic Ovcon to market.

Because the lawsuit was filed as a law enforcement action, the states sought civil penalties and equitable relief. The relief obtained through the settlement will help ensure these companies do not engage in similar conduct in the future. Florida’s share of the settlement funds from both settlements is $511,613 which represents civil penalties and reimburses the state’s fees and costs.

In addition to Florida and the District of Columbia, the following states participated in the agreement: Alaska, Arizona, Arkansas, California, Colorado, Delaware, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont and Virginia.

A copy of the final order is available online at:
http://myfloridalegal.com/webfiles.nsf/WF/MRAY-7C7LGG/$file/OvconFinalOrder.pdf

Source: Florida Attorney General