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# Court Tosses California ‘Pay for Delay’ Ban
- URL: https://www.fdaweb.com/court-tosses-california-pay-for-delay-ban/
- Published: 2021-12-14T12:00:00.000Z
- Updated: 2026-09-14T17:25:48.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5150768

A California federal judge has suspended the state’s law banning drug industry “pay for delay” deals, saying the first-in-the-nation law intended to increase the flow of generic drugs likely violates out-of-state commerce protections. The judge sided with a group of generic drug manufacturers in holding that the law would enable the state to issue multimillion-dollar civil penalties against companies that have no connection to California, Courthouse News Service [reports](https://www.courthousenews.com/judge-halts-california-ban-on-pay-to-delay-pharma-deals/?ref=fdaweb.com) (includes a link to the decision).

The law was signed by Gov. **Gavin Newsom** in 2019\. He said the state was using its buying power to force drug companies to offer a wider variety and cheaper range of generic options.

Federal judge **Troy Nunley** wrote it was likely the industry would ultimately prevail on its claim that the law violates the Commerce Clause and temporarily enjoined the state from enforcing the measure. “The court finds the balance of equities and the public interest element tips sharply in plaintiff’s favor such that an injunction would be proper even if there were only serious questions going to the merits,” he said.