Update August 2009: The House Energy and Commerce Committee has approved a bill banning reverse payment settlements and granting the FTC authority to oversee settlements. Similar legislation is pending in the Senate.
The FTC and the state of California have filed suit challenging reverse payment settlements of patent disputes involving the testosterone supplement AndroGel. The case was filed in the Central District of California and alleges that three companies reached with Solvay Pharmaceuticals included unlawful agreements not to market generic versions of AndroGel until 2015. The generic manufactures sought FDA approval for generic versions of the drug in 2003 and reached the settlements in 2006.