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Pfizer Settles Lipitor Antitrust Case for $93 Million

 |  February 15, 2024

Pfizer, the pharmaceutical giant, has reached a settlement amounting to $93 million in response to antitrust claims lodged by wholesale drug distributors. These distributors accused Pfizer of colluding with Ranbaxy Laboratories of India to hinder the sales of cheaper generic versions of the popular cholesterol drug, Lipitor.

The agreement was unveiled by attorneys representing Lipitor purchasers, including entities such as Rochester Drug Co-Operative Inc and Drogueria Betances LLC of Puerto Rico. The disclosure occurred in a filing made on Wednesday in the U.S. court situated in Trenton, New Jersey. Notably, the distributors’ legal pursuit against Ranbaxy will persist despite this settlement, reported Reuters.

This settlement, which remains subject to judicial approval, arrives after over a decade of protracted litigation. Despite agreeing to the settlement, Pfizer has not admitted any liability. In a statement, the pharmaceutical giant refuted the allegations, asserting that they were “factually and legally without merit.” Pfizer maintained that the settlement was reached as it deemed it to be “fair, reasonable, and the best way to resolve this litigation.”

Related: Pfizer, Seagen Submitted Paperwork To FTC & DOJ For Their $43 Billion Deal

There has been no immediate response from Sun Pharma, which acquired Ranbaxy in 2014, regarding this settlement. Lipitor, introduced by Pfizer in 1997, became a blockbuster drug, generating over $130 billion in sales within its initial 14 years on the market.

The distributors asserted that Pfizer engaged in fraudulent maneuvers to extend its patent exclusivity over Lipitor. Among their accusations were claims that Pfizer incentivized Ranbaxy to delay the introduction of a generic version of Lipitor and participated in spurious legal actions against Ranbaxy concerning the drug.

Legal representatives for the plaintiffs highlighted that the settlement would provide “immediate economic relief” to class members and mitigate the risks associated with ongoing litigation, potential appeals, and the absence of any recovery. They also indicated their intention to seek legal fees of approximately $31 million from the settlement fund.

The resolution of this long-standing legal battle marks a significant development in the pharmaceutical landscape, shedding light on the complexities and controversies surrounding patent rights and market competition within the industry.

Source: Reuters

Uber and Lyft Face FTC Probe Over Alleged Collusion in NYC Pay Deal Uber and Lyft Face FTC Probe Over Collusion in NYC Pay Deal

Uber and Lyft Face FTC Probe Over Alleged Collusion in NYC Pay Deal

 |  January 30, 2025

The U.S. Federal Trade Commission (FTC) has launched an investigation into whether Uber Technologies Inc. and Lyft Inc. illegally coordinated to limit driver pay in New York City, according to Bloomberg. The inquiry comes in response to an agreement the companies made with city officials in July 2024 regarding driver compensation.

FTC Issues Information Demands

Per Bloomberg, the FTC sent civil investigative demands—comparable to subpoenas—to both Uber and Lyft in the closing days of the Biden administration. These demands require the companies to submit information within 30 days about the specifics of their agreement with New York City officials on driver pay.

Uber spokesperson Josh Gold confirmed that the company received the demand from the FTC on January 21. The request was signed by former FTC Chair Lina Khan before she stepped down at the end of the Biden administration. Gold stated in an email that Uber believes its actions complied with New York City regulations and that the company would cooperate with FTC staff. Similarly, Lyft spokesperson CJ Macklin acknowledged receipt of the FTC’s request, emphasizing that the company takes antitrust laws seriously and intends to work with the agency on the matter.

Details of the Agreement and Potential Concerns

According to Bloomberg, the agreement between Uber, Lyft, and New York City officials aimed to address ride-share lockouts that had led to lower driver earnings. However, Uber’s spokesperson denied any direct deal with Lyft, asserting that the company did not conspire to restrict driver pay. Despite this, a press release from the New York City mayor’s office at the time described the situation as an “agreement” with both ride-share companies.

Related: Supreme Court Rejects Uber and Lyft’s Appeal in California Gig Worker Suits

The FTC’s concern, per Bloomberg, is whether the agreement allowed Uber and Lyft—normally direct competitors—to coordinate on driver hiring and wages, potentially violating antitrust laws. While New York City officials are not under investigation, the FTC is examining the extent of their involvement in shaping the deal and the legal framework under which it was established. The agency’s staff memo noted that the city’s role could provide the companies with some legal defense, but further investigation is required.

Next Steps in the Investigation

The future of the probe now rests with FTC Chair Andrew Ferguson, who was appointed by former President Donald Trump. According to Bloomberg, Ferguson has the authority to continue the investigation, slow its progress, or halt it entirely.

As part of the inquiry, the FTC is seeking communications between Uber and Lyft, as well as interactions with New York City officials, including the mayor’s office and the Taxi and Limousine Commission. The agency is also requesting a copy of the agreement itself, according to documents reviewed by Bloomberg.

Source: Bloomberg