Legal Definitions - sham litigation

Definition: Sham litigation is a legal action that is brought without a genuine belief in the merits of the case, but rather with the intention of harassing or harming the defendant. It is a frivolous lawsuit that is filed to delay or prevent competition or to gain an unfair advantage.

Example: A pharmaceutical company files a lawsuit against a generic drug manufacturer, claiming that their product infringes on their patent. However, the patent is about to expire, and the lawsuit is filed only to delay the launch of the generic drug. This is an example of sham litigation.

Explanation: The pharmaceutical company is not genuinely concerned about the patent infringement, but rather wants to prevent the generic drug from entering the market. The lawsuit is filed with the intention of delaying the launch of the generic drug, which would compete with the company's product. This is an example of sham litigation because it is a frivolous lawsuit that is filed to gain an unfair advantage.