Pfizer pays $94M to resolve allegations it made fraudulent patents to delay generic competition

Pfizer will pay $94 million to resolve allegations that it used fraudulent patents to delay generic competition for its anti-inflammatory drug Celebrex.

The lawsuit, brought by 32 direct purchasers of Celebrex in April and certified a class action lawsuit in August, claimed Pfizer attempted to revive its invalidated patent by making material misrepresentations to the U.S. Patent and Trademark Office. As a result, the U.S. PTO granted Pfizer a new patent based on this reportedly inaccurate information.

Further, the plaintiffs — including American Sales Co., Rochester Drug Co-Operative, Cesar Castillo and more — allege Pfizer filed a lawsuit against five generic manufacturers for infringing upon the fraudulently obtained patient to maintain monopoly over the drug.

The 32 direct purchasers argued Pfizer's move to delay generic competition of the drug cost them hundreds of millions.

Pfizer and the direct purchasers entered into the settlement agreement Nov. 22. The agreement still needs official court approval. 

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