As part of the buydown deal, Allergan provided UGARF a fund of $1 million toward potential legal fees along with another requirement that they cooperate as co-defendants against future litigation. This begs the question: why were they revving up for a legal defense?
Litigation was initiated, but it was UGARF who went on the offensive, filing several lawsuits against Dr. Kaswan perhaps in an attempt to exhaust her financially and hamper her ability to finance any legal action against them.
Even more confusing is that during negotiations, Allergan Vice President and Patent Counsel Martin Voet wrote a letter to UGARF directing them to keep "negotiations for a royalty buy-out in confidence...and that no disclosure of such negotiations be made by either party to third parties including Dr. Kaswan." Allergan further required that UGARF "maintain confidentiality as an essential element in completing a definitive Agreement."
UGARF agreed, but why? The only party who could possibly benefit from this was Allergan.
In a letter dated January 7, 2002, prior to negotiations with UGARF, Allergan sought assurances from UGARF that "currently you are the sole, authorized representative of UGA and Kaswan does not speak for UGA in this matter." UGARF was unable to confirm this in their response letter of February 22, 2002. However, in court, Allergan claimed it did receive confirmation from UGARF, but was unable to produce documentation to support this allegation.
Allergan attorney Jeffrey Thomas said during a hearing on April 24, 2004, "Having been told by UGARF that Doctor Kaswan had no role, it was perfectly appropriate for Allergan to say, '...great, then let's keep these negotiations confidential.'"
Both Allergan and the University of Georgia continue to keep the terms of the deal hidden from public scrutiny. Georgia Open Records and Open Meetings Laws require that government meetings and contracts are to be on the public record.
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