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Special Master Recommends Summary Judgment In Favor Of Defendants In Antitrust Class Action

On February 6, 2009, Special Master Stephen M. Orlofsky issued a Report and Recommendation in In re K-Dur Antitrust Litigation, No. 01-1652 (JAG) (D.N.J.), recommending that the District Court grant the defendants' motions for summary judgment and deny two motions for partial summary judgment filed by the Direct Purchaser Plaintiff Class.  At issue in this antitrust action are separate agreements that defendant Schering-Plough Corporation entered into with defendant Upsher-Smith Laboratories, Inc. and ESI Lederle settling patent infringement lawsuits that Schering had initiated after Upsher and ESI sought FDA approval for generic versions of the potassium chloride supplement K-Dur 20.  The Direct Purchaser Plaintiffs allege that the agreements constitute horizontal market allocation and price-fixing agreements in violation of Section 1 of the Sherman Act.  The parties have 20 days to file any objections to the Special Master's Report and Recommendation.