US: Generic drugs antitrust suit moves forward

A federal judge has rejected standing challenges brought by numerous pharmaceutical companies in an attempt to dismiss several antitrust and consumer protection class action claims leveled by entities that either purchased or resold generic drugs at allegedly inflated prices, reported Law.com

The defendants, which consist of 25 pharmaceutical companies, had argued that plaintiffs did not have standing to bring claims based on state laws in jurisdictions where the class representatives did not either purchase or resell the drugs at issue. Specifically, the defendants contended the plaintiffs did not have Article III standing to bring the claims.

US District Judge Cynthia Rufe of the Eastern District of Pennsylvania, in her 48-page decision from Feb. 15, said the U.S. Court of Appeals for the Third Circuit “has not definitively answered” the question of how courts should balance the interplay between Article III standing and class standing. However, Rufe said the plaintiffs’ allegations showed a “substantial and shared interest” in proving the alleged misconduct in the states outlined in the complaints.

The consolidated multidistrict litigation In re Generic Pharmaceuticals Pricing Antitrust Litigation stems from a wide-ranging federal probe that in 2016 led two pharmaceutical executives to plead guilty to price-fixing charges.