King Drug Co. of Florence Inc. v. Cephalon Inc. – Modafinil Antitrust Settlement

Berger Montague served on the Executive Committee and obtained total settlements of over $512 million in this antitrust pay for delay class action on behalf of direct purchasers of modafinil, a prescription drug for sleeping disorders manufactured and sold by defendant Cephalon, Inc. The case was litigated in the United States District Court for the Eastern District of Pennsylvania and captioned King Drug Co. of Florence Inc. v. Cephalon Inc. et al., No. 2:06-cv-01797 (E.D. Pa.).

The plaintiffs alleged that prior to the expected entry of generic competition for modafinil, Cephalon entered into reverse payment agreements with nearly all of its anticipated generic rivals, including Barr Laboratories, Inc., Teva Pharmaceutical Industries, Ltd., Teva Pharmaceuticals USA, Inc., Ranbaxy Laboratories, Ltd., Ranbaxy Pharmaceuticals, Inc., and Mylan Laboratories, Inc. As a result, direct purchasers alleged that they paid inflated prices on their modafinil purchases. After nine years of hard-fought litigation, the court approved a $512 million partial settlement, then the largest settlement ever for a case alleging delayed generic competition. Subsequent non-class settlements pushed the total settlement figure even higher. The Berger Montague team was led by David F. Sorensen.

If you or your company has been harmed by anticompetitive conduct or any conduct that you believe violates the antitrust laws, please contact Berger Montague.

About Berger Montague

Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.