Teva pleased to agree $225 million settlement in historic Barr case

Teva Pharmaceutical Industries (NYSE: TEVA) is to pay $225 million to settle a pay-for-delay case dating back to the 1990s.

The case relates to allegations that Barr Pharmaceuticals, which has since been bought by the Israeli generics giant for nearly $9 billion, was paid $398 million by Bayer (BAYN: DE) not to sell a generic of the German company’s antibiotic Cipro (ciprofloxacin).

Bayer had previously sued Barr, arguing that its generic version would infringe a patent, leading to the settlement between the companies. A group of American activists who bought Cipro, however, said that the settlement violated antitrust law, driving up prices. The case began in 2000 but only now has Teva reached a final settlement with the California Supreme Court.