FTC May Be Hampered In Pursuing Actions Against Pharma In Wake Of Supreme Court Ruling

High court’s decision that FTC lacks authority to seek monetary recovery in litigation is boon for drug makers who have been subject to hefty payouts in reverse settlement and other cases brought by the commission.

US Supreme court building with 1st statue on left
Supreme Court rules FTC cannot obtain equitable monetary relief in court proceedings • Source: Brenda Sandburg

The US Supreme Court’s unanimous decision that the Federal Trade Commission does not have the authority to seek monetary relief such as restitution or disgorgement in litigation eliminates the agency’s key weapon in fraud and antitrust actions. It also is beneficial for pharmaceutical companies, which have paid out substantial sums in so-called pay-for-delay cases and other matters.

In its 22 April opinion in AMG Capital Management LLC v. FTC, the court held that Section 13 (b)...

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