April 10 (Reuters) - Pfizer ( PFE ) subsidiary Wyeth has

agreed to pay $39 million to resolve claims from drug purchasers

that it conspired with rival Teva to delay launching a

less-expensive version of the antidepressant drug Effexor XR.

Plaintiffs' lawyers for Rochester Drug Co-Operative, Stephen

L. LaFrance Holdings and other "direct" drug buyers in the

class-action case revealed the terms of the proposed deal in a

filing in New Jersey federal court on Tuesday.

If approved by a judge, the settlement would end more

than 12 years of litigation accusing Wyeth of violating U.S.

antitrust law in its dealings with Teva. The drug purchasers'

case against Teva will continue, according to the settlement

papers.

Pfizer ( PFE ), which acquired Wyeth in 2009 for $67 billion, said

in a statement that the claims in the case are "factually and

legally without merit." The statement called the proposed

settlement "fair, reasonable and the best way to resolve this

litigation."

Teva and the plaintiffs' attorneys did not immediately

respond to requests for comment on Wednesday. Teva has denied

the plaintiffs' claims.

The plaintiffs and Wyeth said in settling they will avoid

further litigation costs and the risk of trial.

Wyeth generated annual sales of $4 billion from Effexor XR,

its biggest product.

In their lawsuit, the plaintiffs alleged they paid

artificially higher prices for Effexor XR because Wyeth and Teva

agreed to suppress generic competition for the drug. Wyeth was

accused of making a so-called "reverse payment" to generic drug

manufacturer Teva to delay the market entry of a less expensive

version of the drug.

Wyeth in 2014 won a court order dismissing the plaintiffs'

claims, but the Philadelphia-based 3rd U.S. Circuit Court of

Appeals three years later reinstated the allegations.

Some retailer plaintiffs such as Kroger ( KR ), Walgreens, CVS,

Meijer and Rite Aid ( RADCQ ) that filed individual actions against Wyeth

have already settled. Those retailers, which are excluded from

Tuesday's settlement, said they planned to continue to litigate

claims against Teva.

Attorneys for the direct purchaser plaintiffs said they

would seek up to one-third of the settlement fund, or about $13

million, in legal fees.

In re: Effexor XR Antitrust Litigation, U.S. District Court

for the District of New Jersey, No. 3:11-cv-05479-PGS-JBD.

For direct purchaser plaintiffs: Thomas Sobol of Hagens

Berman Sobol Shapiro; David Sorensen of Berger Montague; Peter

Kohn of Faruqi & Faruqi; Barry Taus of Taus, Cebulash & Landau;

Dianne Nast of Nastlaw; and Don Barrett of Barrett Law Group

For Wyeth: Raj Gandesha of White & Case

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