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REUTERS/Arnd Wiegmann/File Photo
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The pharmaceutical industry has filed at least four lawsuits this year challenging state laws requiring drugmakers to offer discounts on drugs dispensed by third-party pharmacies that contract with hospitals and clinics serving low-income populations, our colleague Brendan Pierson reports.
Novartis, represented by Catherine Stetson of Hogan Lovells, and Pharmaceutical Research and Manufacturers of America, the largest U.S. drug industry group, filed the latest cases in West Virginia federal court. They followed federal lawsuits earlier in the week by Novartis over a similar law in Maryland, and by PhRMA over one in Mississippi. In a related action, Sanofi, represented by Jones Day’s Brett Shumate, just hit HHS with a public records lawsuit in D.C. federal court about drug pricing.
The lawsuits contend state laws conflict with the federal law governing a drug discount program for hospitals and clinics that serve low-income populations, known as 340B. Drugmakers must participate in the 340B program in order to receive funds from government health insurance programs like Medicare and Medicaid. Proponents of the state laws say they ensure that 340B discounted drugs remain available to the populations that need them. A spokesperson for Maryland Attorney General Anthony Brown declined to comment. The offices of the West Virginia and Mississippi attorneys generals did not immediately respond to requests for comment.
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- Fox Corp’s Tubi has sued plaintiffs firm Keller Postman for allegedly manufacturing tens of thousands of “meritless” discrimination claims against it in the hopes of coercing a settlement out of the TV streaming service. Tubi accused the firm of filing nearly 24,000 complaints with vague claims of discrimination with JAMS, a private arbitration service that hears such claims. Keller Postman did not immediately respond to a request for comment.
- A Georgia appeals court will hear arguments in October on whether to disqualify Fulton County District Attorney Fani Willis from prosecuting Donald Trump for trying to overturn his 2020 defeat, a schedule that will likely postpone that trial until after the Nov. 5 election. At issue is whether the prosecution is tainted as a result of Willis’ past affair with her one-time top deputy whom she hired to work on the probe.
- Latham’s Gregory Garre led arguments for American Airlines at the 1st Circuit in urging the appeals court to reverse a May 2023 decision requiring it to end an alliance with JetBlue. Garre, facing off against the DOJ’s Daniel Haar, said American would consider a new arrangement with JetBlue Airways if it wins the appeal. Haar said American and JetBlue were fierce competitors on price before the agreement.
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That’s how much Munger Tolles can expect to receive for its legal work for Washington state on its lawsuit seeking to block Kroger’s $25 billion purchase of rival grocer Albertsons, contract records show. The documents, obtained by Reuters through a records request, show two partners at the firm are charging the state more than $1,100 an hour. The Munger Tolles team includes Los Angeles-based antitrust partners Glenn Pomerantz and Kuruvilla Olasa. The work marks Pomerantz’s latest antitrust effort serving as a private attorney for a government client.
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If you are a mass torts lawyer, you should be paying attention to a trend that has emerged in litigation over the discontinued heartburn medication Zantac. A Delaware Superior Court judge on Friday rejected the defendants’ Daubert challenge to the plaintiffs’ experts who will opine that the medication can cause cancer — even though in December 2022 the federal judge overseeing parallel claims excluded plaintiffs’ experts and granted summary judgment to defendants. Co-lead counsel in the Delaware suits told Alison Frankel that the ruling is a prime example of a “widening gap” between state and federal judges on their gatekeeping job. If he’s right, Frankel says, plaintiffs lawyers may want to opt for filing mass tort cases in Delaware state court.
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“A deal should be a deal.”
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—Tesla, in a filing in which it defended a proposal to ratify CEO Elon Musk’s $56 billion pay package, days after a proxy advisory firm recommended shareholders to vote against the proposal. The compensation, set and approved in 2018 by shareholders, rewards Musk based on Tesla’s market value and operational milestones. But a Delaware judge voided it in January, declaring the package “unfathomable.” Under Delaware law, ratification means that the proposal is either accepted or rejected in its entirety, Tesla said, adding that a new pay package would be costlier to the shareholders.
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- U.S. Attorney General Merrick Garland is scheduled to appear before the House Judiciary committee for a DOJ oversight hearing. Garland plans to criticize Donald Trump’s Republican allies in the House, where he will accuse them of peddling false narratives that endanger law enforcement and undermine the department’s integrity, our colleague Sarah N. Lynch reports.
- U.S. District Judge Philip Gutierrez in Los Angeles will hold a final hearing in the NFL “Sunday Ticket” antitrust case, prior to a jury trial set to kick off on Wednesday. Residential and commercial subscribers of the weekly pro football package of games are seeking billions of dollars in alleged overcharges. The NFL has denied the allegations and defended its business practices for distributing what it has called a premium product. Several current and former league executives have been named as witnesses.
- A 9th Circuit panel will hear arguments from Montana seeking to revive a new state law that would in some locations prohibit sexually oriented performances including “drag story hours.” A federal judge last year blocked enforcement of the law. “No evidence before the court indicates that minors face any harm from drag-related events or other speech and expression critical of gender norms,” Chief U.S. District Judge Brian Morris wrote.
- The federal judiciary’s Committee on Rules of Practice and Procedure is set to meet in D.C. for a public session. Panel members will hear various updates on artificial intelligence and amicus brief disclosures.
- Baseball star Shohei Ohtani’s former interpreter, Ippei Mizuhara, is due to appear in federal court in California, where he was charged with stealing more than $16 million from the Los Angeles Dodgers power-hitting pitcher to cover gambling debts. Ohtani has said he was a victim of theft by Mizuhara and that he never bet on baseball or knowingly paid a bookmaker. Mizuhara is planning to plead guilty.
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Court calendars are subject to last-minute docket changes.
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- Johnson & Johnson must pay $260 million to an Oregon woman who said she got mesothelioma from inhaling the company’s talc powder and her husband, an Oregon jury found. The verdict comes as the company continues to pursue a proposed $6.48 billion settlement of most talc-related lawsuits against it through a prepackaged bankruptcy. J&J in a statement said “talc is safe, does not contain asbestos, and does not cause cancer.” The company said it will appeal.
- Nursing home operator LaVie Care Centers, which runs 43 facilities in five U.S. states, filed for bankruptcy protection, seeking to downsize its debts. LaVie has struggled for years with high labor costs. It said it pushed to seek protection for a number of reasons, including debt collection efforts by medical staffing agencies and a new U.S. agency staffing rule.
- A Federal Circuit panel upheld a $20 million jury verdict for energy-management company EcoFactor in its lawsuit alleging Google’s Nest smart thermostats violate its patent rights. The appeals court ruled 2-1 against Google’s arguments that the evidence did not support the Texas jury’s infringement ruling and damages award.
- Research animal breeder Envigo pleaded guilty to animal welfare and environmental crimes, resolving a two-year DOJ probe into its mistreatment of thousands of beagles. Envigo agreed to pay $22 million in fines, plus an additional $13.5 million to support animal welfare and environmental projects, cover law enforcement expenses and improve its own facilities. It is the largest fine ever in an animal welfare case imposed by the DOJ, the U.S. Attorney for the Western District of Virginia said.
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In light of the proliferation of lawsuits challenging corporate mergers, the issue of whether a “bump up” provision applies to exclude coverage under a directors and officers liability insurance policy for settlements or judgments in such lawsuits is a recurring one, write Michael Zigelman, Alexander Razi and Jack Eyers of Kaufman Dolowich. Long-running insurance coverage litigation arising out of the merger between Towers Watson and Willis Group has been closely followed by the D&O insurance industry and has resulted in several intriguing decisions.
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