Crowell & Moring Obtains Victory In First Tried Indirect Purchaser Pharmaceutical Antitrust Case
Client Alert | 1 min read | 02.01.08
Crowell & Moring lawyers, led by Robert T. Rhoad, obtained a significant victory on behalf of Health Care Service Corporation ("HCSC") in the first and only indirect purchaser antitrust case to date tried to verdict involving the pharmaceutical industry. On Thursday, January 24, 2008, Chief Judge Thomas F. Hogan of the U.S. District Court of the District of Columbia granted HCSC's motion to treble the damages awarded by the jury to HCSC in the In re Lorazepam & Clorazepate Antitrust Litigation (D.D.C.). Initially, HCSC was included within a class of indirect purchasers/third-party payors in the underlying class actions. Although the class litigation was settled, HCSC, along with three other third-party payors (Blue Cross Blue Shield of Massachusetts, Blue Cross Blue Shield of Minnesota and Federated Mutual Insurance Co.), elected to opt-out of the class settlement and litigate their antitrust claims on their own. This decision to opt-out was based on the fact that the class settlement provided the nationwide third-party payor class members only approximately $35 million, constituting mere pennies on the dollar for actual damages suffered due to Defendants' anticompetitive conduct in the markets for two highly utilized anti-anxiety drugs -- lorazepam and clorazepate. Following years of litigation and a month-long trial, the jury found in favor of our client, HCSC, as to all claims and as to all damages alleged. The Court denied various post-verdict motions filed by Defendants and granted Plaintiffs' motions for trebling and other enhancements to the damages awarded by the jury. The Court's recent damages award to the opt-out Plaintiffs that litigated and tried their claims, including HCSC, as trebled/enhanced, now totals over $69 million (i.e., roughly 200% of the settlement obtained for the entire nationwide class of third-party payors) and does not yet include additional amounts for attorneys' fees and costs and/or interest that are the subjects of pending supplemental motions.
Insights
Client Alert | 3 min read | 12.13.24
New FTC Telemarketing Sales Rule Amendments
The Federal Trade Commission (“FTC”) recently announced that it approved final amendments to its Telemarketing Sales Rule (“TSR”), broadening the rule’s coverage to inbound calls for technical support (“Tech Support”) services. For example, if a Tech Support company presents a pop-up alert (such as one that claims consumers’ computers or other devices are infected with malware or other problems) or uses a direct mail solicitation to induce consumers to call about Tech Support services, that conduct would violate the amended TSR.
Client Alert | 3 min read | 12.10.24
Fast Lane to the Future: FCC Greenlights Smarter, Safer Cars
Client Alert | 6 min read | 12.09.24
Eleven States Sue Asset Managers Alleging ESG Conspiracy to Restrict Coal Production
Client Alert | 3 min read | 12.09.24
New York Department of Labor Issues Guidance Regarding Paid Prenatal Leave, Taking Effect January 1