Alza Corporation et al v. Par Pharmaceutical Inc. et al

Filing 139

MEMORANDUM ORDER Granting 125 MOTION to Strike Defenses and Dismiss Counterclaims Alleging Inequitable Conduct, but with leave to amend within ten day. Signed by Judge Richard G. Andrews on 5/27/2014. (nms)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE

Alza Corporation and Janssen Pharmaceuticals,
Inc.,

Plaintiffs,
Civil Action No. 13-1104-RGA
(consolidated)

V.

Par Pharmaceutical, Inc.,

Defendant.
Alza Corporation and Janssen Pharmaceuticals,
Inc.,

Plaintiffs,

v.
Osmotica Kereskedelmi es Szolgaltato Kft and
Osmotica Pharmaceutical Corp.,

Defendants.
MEMORANDUM ORDER

Before the Court is Plaintiffs Motion to Strike Defenses and Dismiss Counterclaims
Alleging Inequitable Conduct (D.1. 125) and related briefing. (D.I. 126, 132, 133, 137).
Defendants have each filed Abbreviated New Drug Applications ("ANDAs") seeking to market
generic versions of Plaintiffs' drug Concerta. Plaintiffs have alleged that the filing of these
ANDAs infringes one or more claims of U.S. Patent No. 8,163,798 and U.S. Patent No.
8,629,179. Defendants counterclaimed that the patents are invalid and not infringed, and have

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also asserted defenses and counterclaims of inequitable conduct. The inequitable conduct
allegations are the subject of this motion. Plaintiffs assert that Defendants' inequitable conduct
allegations have not been pled with particularity because the allegations do not identify "who"
committed the inequitable conduct.
In order to establish inequitable conduct, an accused infringer must prove that a specific
individual with a duty of candor to the PTO "misrepresented or omitted material information
with the specific intent to deceive the PTO." Therasense, Inc. v. Becton, Dickinson & Co., 649
F.3d 1276, 1287 (Fed. Cir. 2011) (en bane). Allegations of inequitable conduct must be pled with
particularity. Exergen Corp. v. Wal-Mart Stores, 575 F.3d 1312, 1328 (Fed. Cir. 2009). "[T]o
plead the circumstances of inequitable conduct with the requisite particularity under Rule 9(b ),
the pleading must identify the specific who, what, when, where, and how of the material
misrepresentation or omission committed before the PTO." Id. at 1328. Plaintiffs assert only that
Defendants did not adequately allege the "who" aspect of the pleadings. (D.I. 126 at 15-16 n. 9).
In support of their assertion, Plaintiffs point to Osmotica's repeated reference to "the
Applicants," which is loosely defined as named inventors or identified inventors or one or more
of their agents or attorneys or other persons involved in the prosecution of the applications
including the Prosecution Attorneys. (D.1. 121

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74). Similarly, Plaintiffs point to Par's shifting

use of "Alza," and "Alza, the named inventors, and individuals substantively involved in the
preparation and prosecution of the applications." (D.I. 118 ~ 6). Additionally, the Court notes
that the paragraphs in Par's answer which specifically allege inequitable conduct do not
particularly point out the "who." (D.I. 118 at 16 ~~ 30-31 ).
The Court agrees that Defendants have failed to adequately plead the "who" of the
inequitable conduct allegations. However, the inadequacy of the pleadings has nothing to do with
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any dearth of factual basis. The insufficiency of the present allegations is principally that they
allege a mishmash of facts without sorting them out in relation to particular acts of particular
individuals. The Defendants need to identify by name the individuals who did things constituting
affirmative misconduct or contrary to the duty of candor, and material to the issuance of the
patents, on particular dates, with the intent to deceive the PTO. A conclusory statement at the
end of the pleadings that the facts are sufficient to allege inequitable conduct is not enough.
The Court grants the motion to dismiss the inequitable conduct counterclaims (D.I. 125),
but with leave to amend within ten days.

Entered this

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fl_ day of May, 2014.