Novartis Affiliates Represented By White & Case LLP Win Summary Judgment In Dispute Over Generic Retin-A®
Rulings precede settlement of $190 million dispute

New York, February 28, 2003 ... White & Case clients Geneva Pharmaceuticals, Inc. and Novartis Consumer Health, Inc. (NCH) won a series of summary judgment motions in federal district court in Ft. Myers, Florida last week, paving the way for the settlement of a lawsuit brought against them by generic drug developer, Spear Pharmaceuticals, Inc. The dispute concerned agreements to produce and distribute a generic version of the brand-name acne medicine Retin-A^®.

White & Case attorneys for Geneva and NCH, both affiliates of Novartis AG, filed motions for summary judgment in response to Spear’s allegations that they breached written and oral contracts between the parties, failed to act in good faith and committed negligence in connection with the agreements. Spear alleged damages of approximately $190 million in connection with its claims. Geneva and NCH filed two counterclaims against Spear for wrongful termination of the contracts.

Judge Paul A. Magnuson granted the defendants’ motions for summary judgment, ruling in favor of Geneva and NCH on five of seven of Spear’s claims and one of defendants’ two counterclaims. The Court also severely restricted Spear’s remaining claims. Subsequent to the Court’s ruling, the parties reached a settlement of the action. The settlement’s terms are confidential.

White & Case litigation partner Wayne Cross and counsel Michael Gallagher led the Geneva/NCH team that included associates Paul Carberry and James Sullivan.

"We were confident that the facts and the law did not support plaintiff’s claims against Geneva and NCH and the Court obviously agreed with us. We are gratified that the ruling and subsequent settlement worked out so well for our clients," said Cross.

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