Patheon Secures $18.5 Million in Attorney Fees Post Procaps Antitrust Victory

Washington, DC – August 25, 2017 – As part of Patheon’s multiyear antitrust battle with former joint venture partner Procaps Laboratories, Cooley secured an $18.5 million fee and cost award in Patheon’s favor as the prevailing party under the Florida Deceptive and Unfair Trade Practices Act. The $18.5 million award in Patheon’s favor represents all amounts Patheon sought in its fee and cost petition.

The court had high praise for the Cooley and Patheon team, holding that “Patheon’s counsel obtained an excellent result. Obtaining a defense summary judgment on all counts and having the ruling affirmed on appeal is surely a significant defense victory … Patheon was well served by a dedicated effort from a well-coordinated legal team.” Cooley litigation partner Mike Klisch led the team for Patheon.

In January 2012, Patheon and Procaps signed a seven-year collaboration agreement to provide softgel development and manufacturing services to customers worldwide. In December 2012, Patheon acquired Banner Pharmacaps, also a softgel specialist company. Following this acquisition, Procaps sued Patheon, alleging that the acquisition converted the collaboration agreement into an illegal market division, violating US antitrust laws. In 2015, on behalf of Patheon, Cooley won summary judgment, dismissing the case in full.

On appeal, following thorough review and oral argument, the US Court of Appeals for the 11th Circuit concluded that Patheon was entitled to summary judgment, reaffirming the magistrate’s grant “both because Procaps failed to establish the foundational requirement of concerted action necessary to maintain a Section 1 claim under the Sherman Act, and because Procaps also failed to show any actual anticompetitive effectives.” 

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Related Contacts
Mike Klisch Partner, Washington, DC
Mazda Antia Partner, San Diego
Robert Cahill Partner, Reston
Howard Morse Partner, Washington, DC
Mary Kathryn Kelley Pro Bono Counsel, San Diego
Dee Bansal Associate, Washington, DC
David Burns Associate, Washington, DC
Joshua Siegel Special Counsel, Washington, DC
Scott Stemetzki Associate, Reston
Jane van Benten Associate, Washington, DC
Craig TenBroeck Associate, San Diego
Dana Moss Senior Associate, Washington, DC