Allergan PLC Agrees To Pay $750 Million To Settle Namenda Antitrust Suit
In 2015, Plaintiffs filed a First Amended Class Action Complaint on behalf of a proposed class of direct purchasers of branded and generic Namenda, a drug used to treat moderate-to-severe Alzheimer’s, alleging a two-pronged scheme on the part of Defendants to impair generic competition, including a “reverse payment” agreement to delay generic entry, and the announcement and implementation of a “product hop” or “hard switch” of the market from branded Namenda IR product to Namenda XR in order to undermine and impair generic competition when it belatedly began. On October 28, 2019, Allergan PLC announced that it had reached a settlement agreement with direct purchaser Plaintiffs for $750 million, thus precluding a trial that was set to begin the same day in New York.