U.S. Federal Trade Commission wants to revive Endo antitrust appeal despite bankruptcy

(Reuters) - Endo International PLC's pending bankruptcy should not block the U.S. Federal Trade Commission from challenging the dismissal of an antitrust complaint it filed against the pharmaceutical company, the agency told the U.S. Court of Appeals for the D.C. Circuit on Thursday.

The FTC has asked the D.C. Circuit to reinstate a briefing schedule in the litigation, after the appeals court in August paused the case pending Endo's Chapter 11 bankruptcy filing in the Southern District of New York.

The drugmaker filed for bankruptcy amid its effort to resolve more than 3,100 lawsuits over its alleged role in the national opioid epidemic. U.S. law can automatically freeze certain legal actions until bankruptcy proceedings are resolved. Endo has asked a U.S. bankruptcy judge to pause hundreds of state and local government lawsuits.

In the D.C. Circuit, the FTC argued the bankruptcy code's automatic stay provision "does not apply to government enforcement of its police and regulatory power, an exception that applies foursquare to this case." The agency's underlying complaint, filed in 2021, alleged Endo struck a deal with Impax Laboratories LLC in 2017 that curbed competition for extended release oxymorphone.

"The sooner the FTC can secure an injunction against the agreement, the sooner consumers should realize the benefit of lower prices from competitive entry by Endo or third parties," FTC attorneys told the D.C. Circuit.

Spokespersons for the FTC and Endo on Friday declined to comment.

A representative from Impax owner Amneal Pharmaceuticals Inc did not immediately respond to a message seeking comment.

Endo's lawyers at Dechert told the D.C. Circuit in a filing on Monday that the company "takes no position on the applicability of the bankruptcy code's automatic stay to the instant appeal."

Endo disputed the FTC's claims in the trial court, and U.S. District Judge Royce Lamberth in March ruled against the agency. Lamberth said Endo had a "lawful patent monopoly" that was protected under U.S. intellectual property law.

Endo's lawyers told the D.C. Circuit that the company "has publicly announced that it has ceased research and development of new opioid medications and has not launched a single opioid medication."

In August, Endo said it had reached a $450 million settlement with more than 30 states to resolve opioid lawsuits.

The case is Federal Trade Commission v. Endo Pharmaceuticals Inc et al, U.S. Court of Appeals for the D.C. Circuit, No. 22-5137.

For FTC: Mark Hegedus of the FTC

For Endo: George Gordon of Dechert

Read more:

endo seeks to block government opioid lawsuits during its bankruptcy

endo files for bankruptcy as u.s. opioid litigation drags

endo, impax defeat ftc's latest antitrust case over opioid

u.s. ftc sues endo, impax for 2017 agreement regarding pain drug

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