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Government

Feb. 18, 2025

Federal judge strikes down California's ban on 'pay-for-delay' drug deals

A federal judge has blocked California from enforcing its ban on "pay-for-delay" pharmaceutical deals beyond state borders, striking a major blow to the state's efforts to curb the practice. The ruling limits California's regulatory reach, contrasting with a recent U.S. Supreme Court decision on farm animal welfare laws.

A federal judge in Sacramento struck down California's ability to enforce a law barring so-called "pay-for-delay" deals by pharmaceutical companies. Chief Judge Troy L. Nunley of the U.S. Eastern District of California wrote that the state cannot enforce AB 824 outside its borders, effectively gutting the law.

His order also systematically dismantled the state's arguments the law was protected by a 2023 U.S. Supreme Court ruling allowing California to regulate f...

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