Representation: Drug pricing case
Industry: Pharmaceutical/Medical Device
Region: North America
Arnold & Porter LLP obtained a significant victory for AstraZeneca, along with several other pharmaceutical companies, in a drug pricing case filed in the Northern District of California. The case, brought by the County of Santa Clara on behalf of a putative class of other counties in the State of California, alleged that AstraZeneca and other pharmaceutical companies overcharged for drugs purchased by hospitals, clinics and other providers entitled to discounted prices under the Public Health Service Act (known as "340B entities"). The County sought damages for those alleged overcharges under the California False Claims Act and California's Unfair Competition Law (Bus. & Prof. Code Section 17200), among other theories.
Arnold & Porter took the lead on behalf of the joint defense group, and successfully briefed and argued two motions to dismiss the complaint in its entirety. The court allowed plaintiff to file a final motion for leave to amend, and the Arnold & Porter team briefed and argued the opposition for the group. On July 28, the court denied the motion for leave to amend and dismissed the entire action with prejudice. In a significant interpretation of Section 17200, the court agreed with defendants that the County lacked standing to sue under the statute. The court also dismissed the state law False Claims Act claim for failure to satisfy the pleading requirements of Rule 9(b).