Justia Antitrust & Trade Regulation Opinion Summaries

Amphastar Pharmaceuticals Inc. and its wholly owned subsidiary (collectively, Amphastar) and Sandoz Inc. were competitors in the U.S. market for generic enoxaparin, an anticoagulant. Momenta Pharmaceuticals Inc. served as Sandoz’s contract laboratory. Amphastar filed a complaint alleging antitrust violations by Sandoz and Momenta based on Defendants’ alleged misrepresentations to the United States Pharmacopeial Convention, a private standard-setting organization charged with ensuring the quality of drugs. Defendants brought an infringement suit against Amphastar, resulting in a temporary restraining order (TRO) and preliminary injunction prohibiting Amphastar from selling enoxaparin. The preliminary injunction was later vacated, but it did prevent Amphastar from selling its generic enoxaparin for approximately three months. Amphastar then filed this suit under the Sherman Act seeking damages for lost profits during the pendency of the TRO and injunction. The district court dismissed the complaint under the Noerr-Pennington doctrine, which immunizes good-faith petition of government entities from antitrust liability. The First Circuit reversed, holding that the district court erred in applying Noerr-Pennington. Remanded for the district court to consider Defendants’ other arguments in the first instance. View "Amphastar Pharmaceuticals, Inc v. Momenta Pharmaceuticals, Inc." on Justia Law

The district court certified eight classes, consisting of persons in Illinois and Missouri who take eye drops manufactured by six pharmaceutical companies for treatment of glaucoma. Plaintiffs claimed that the defendants’ eye drops are unnecessarily large and wasteful, in violation of the Illinois Consumer Fraud Act, 815 ILCS 505/1, and the Missouri Merchandising Practices Act, Mo. Rev. Stat. 407.010, so that the price of the eye drops is excessive and that the large eye drops have a higher risk of side effects. There was no claim that members of the class have experienced side effects or have been harmed because they ran out of them early. The Seventh Circuit vacated with instructions to dismiss. The court noted possible legitimate reasons for large drops, the absence of any misrepresentation or collusion, and that defendants’ large eye drops have been approved by the FDA for safety and efficacy. “You cannot sue a company and argue only ‘it could do better by us,’” nor can one bring a suit in federal court without pleading that one has been injured. The plaintiffs allege only “disappointment.” View "Eike v. Allergan, Inc." on Justia Law

Drummond Financial Services, LLC and TMX Finance Holdings, Inc. were competitors in the automobile title loan business. Both companies were based in Georgia, with TMX doing business as “TitleMax.” In 2014, Drummond and several of its affiliated companies filed a lawsuit against TitleMax and several of its affiliated companies, alleging that TitleMax was “engaged in a nationwide campaign to systematically and illegally steal [Drummond’s] customers.” Based on these allegations, Drummond asserted claims against TitleMax under the laws of Georgia and various other states for trespass, misappropriation of trade secrets, tortious interference with contracts, and unfair competition. Drummond filed a motion for a nationwide interlocutory injunction to prevent TitleMax from continuing to engage in practices that Drummond alleged were tortious and illegal. Following a hearing, the trial court granted a nationwide interlocutory injunction that prohibited TitleMax from “[e]ntering any of [Drummond’s] [s]tores or the parking lots [or certain portions of the parking lots] of [Drummond’s] [s]tores” to solicit Drummond customers or to record their license plate numbers or vehicle identification numbers (other than for purposes permitted by the Driver’s Privacy Protection Act). In addition, the injunction prohibited TitleMax from offering compensation to Drummond employees to refer Drummond customers to TitleMax. TitleMax appealed. Those aspects of the injunction appeared to the Georgia Supreme Court to have been based on the claims for trespass and misappropriation of trade secrets, but the laws of trespass and trade secrets (at least in Georgia) did not support the scope of the injunction. Accordingly, the Court vacated the injunction in those respects, and remanded for the trial court to reconsider the scope of its injunction. To the extent that the parties on remand might rely on law that varies significantly from state to state, the Court reminded them that activities in one state are not due to be enjoined simply because they might be unlawful if done in another state. View "TMX Financial Holdings, Inc. v. Drummond Financial Services, LLC" on Justia Law

American Dawn terminated plaintiff, a restaurant linen salesman, for participating in a fraudulent scheme against ALSCO, and plaintiff later found employment with American Dawn's competitor, Baltic. After plaintiff joined Baltic, a sales manager at American Dawn and a consultant for ALSCO allegedly conspired to freeze Baltic out of the restaurant linens market. Plaintiff lost his job as a result of the alleged conspiracy and subsequently filed suit, alleging violation of the antitrust laws, 15 U.S.C. 1 et seq. The court concluded that plaintiff lacked standing to challenge a conspiracy directed at his employer even if the conspiracy caused plaintiff's termination. The court further concluded that plaintiff failed to plead claims of racketeering, tortious interference, civil conspiracy, negligent misrepresentation, and fraud. Accordingly, the court affirmed the judgment. View "Feldman v. American Dawn, Inc." on Justia Law

Plaintiffs, retail grocers, filed putative class actions against two large full-line wholesale grocers, alleging that the wholesalers' contract to exchange retailer supply agreements constituted market allocation in violation of the Sherman Act, 15 U.S.C. 1. Plaintiffs formed the Midwest Class and the New England Class, each class having an Arbitration Subclass of retailers who had arbitration agreements with their current (post-swap) wholesaler. The district court dismissed the purported representatives of the Arbitration Subclasses and the court reversed. At that point, the district court had rejected the proposed Midwest and New England classes and granted defendants' motion for summary judgment. The court reversed, ordering the district court to consider a narrower Midwest class. On remand, Colella moved to intervene to join Village Market, the New England Arbitration Subclass representative, in seeking to certify a narrower New England class. The district court denied the motion and announced that it would not consider any new class of New England plaintiffs. The court concluded that it does not have discretion to hear Village Market's appeal under Rule 23(f). The court explained that an order that leaves class-action status unchanged from what was determined by a prior order was not an order granting or denying class action certification. The court also concluded that the district court did not abuse its discretion by denying Colella's motion to intervene as time-barred. Accordingly, the court affirmed the judgment. View "Colella's Super Market, Inc. v. SuperValu, Inc." on Justia Law

Plaintiffs, retail grocers, filed putative class actions against two large full-line wholesale grocers, alleging that the wholesalers' contract to exchange retailer supply agreements constituted market allocation in violation of the Sherman Act, 15 U.S.C. 1. Plaintiffs formed the Midwest Class and the New England Class, each class having an Arbitration Subclass of retailers who had arbitration agreements with their current (post-swap) wholesaler. Each Arbitration Subclass filed suit against only its previous wholesaler, with which it no longer had a current arbitration agreement. The district court dismissed the Arbitration Subclasses from the case. On remand, the district court rejected the wholesalers' alternate successors-in-interest theory and the wholesaler's third alternate theory that they could directly enforce their previous arbitration agreements because some of the conduct at issue occurred when the previous agreements were still in effect. The court concluded that the district court did not err by rejecting the successors-in-interest theory where the court was not aware of any authority supporting the proposition that a predecessor-in-interest bears a sufficiently close relationship to a successor-in-interest such that the predecessor-in-interest can compel arbitration under an agreement to which only the successor-in-interest is a signatory. The court rejected the direct enforcement argument, concluding that wholesalers may not directly enforce the arbitration agreements to which they are no longer signatories. Accordingly, the court affirmed the judgment. View "Millennium Operations v. SuperValu" on Justia Law

Organik and Dow both manufacture opaque polymers, hollow spheres used as additives to increase paint’s opacity. Dow has maintained its worldwide market-leader position through a combination of patent and trade-secret protections. Dow filed a complaint with the International Trade Commission requesting an investigation into whether Organik’s opaque polymer products infringed four Dow patents. The Commission granted Dow’s request, and the parties began discovery. During the proceedings, Dow amended its complaint to add allegations of trade secret misappropriation when it discovered that Organik may have coordinated the production of its opaque polymers with the assistance of former Dow employees. As Dow attempted to obtain discovery relating to the activities of those employees, Dow discovered spoliation of evidence “on a staggering scale.” The Federal Circuit affirmed the Commission’s imposition of default judgment and entry of a limited exclusion order against Organik as sanctions for the spoliation of evidence. Organik’s “willful, bad faith misconduct” deprived Dow of its ability to pursue its trade secret misappropriation claim effectively. The record supports the limited exclusion order of 25 years with the opportunity for Organik to bypass that order at any time if it can show that it has developed its opaque polymers without using Dow’s misappropriated trade secrets. View "Organik Kimya v. International Trade Commission" on Justia Law

In 2010, Lenox MacLaren Surgical Corporation (“Lenox”) sued several related corporations, Medtronic, Inc.; Medtronic PS Medical, Inc. (“PS Medical”); Medtronic Sofamor Danek, Inc. (“MSD, Inc.”); and Medtronic Sofamor Danek Co. Ltd. (“MSD Japan”) (collectively, “Defendants”), for monopolization and attempted monopolization in violation of section 2 of the Sherman Act. Lenox alleged that Defendants engaged in illegal activity to advance a coordinated, anticompetitive scheme in which a related non-party, Medtronic Sofamor Danek USA, Inc. (“MSD USA”), also participated. Lenox sued MSD USA in 2007 on claims arising from the same set of facts. In this case, Lexon challenged the district court’s disposition of Defendants’ second motion for summary judgment, which claimed that Lenox could not prove the elements of its antitrust claims against any of the named Defendants individually, and that Defendants cannot be charged collectively with the conduct of MSD USA or of each other. They also argued that the doctrine of claim preclusion barred Lenox’s claims, in light of the prior proceeding against MSD USA. The district court granted summary judgment, holding that because Lenox could not establish each of the elements of an antitrust claim against any one defendant, or establish a conspiracy among them, Lenox’s claims failed as a matter of law. Lenox appealed. But finding no reversible error, the Tenth Circuit affirmed. View "Lenox MacLaren Surgical Corp. v. Medtronic" on Justia Law

Plaintiffs filed a class action alleging that Takeda prevented competitors from timely marketing a generic version of Takeda’s diabetes drug ACTOS by falsely describing two patents to the FDA. Plaintiffs claimed that these false patent descriptions channeled Takeda’s competitors into a generic drug approval process that granted the first-filing applicants a 180-day exclusivity period, which in turn acted as a 180-day "bottleneck" to all later-filing applicants. 9 out of 10 generic applicants took that route. Teva was prevented from seeking approval via another regulatory mechanism when the FDA announced that all generic manufacturers would be required to take the bottlenecked route. Plaintiffs alleged that they were wrongfully obligated to pay monopoly prices for ACTOS when Takeda's patent on the active ingredient in ACTOS expired when the mass of generic market entry occurred. The district court dismissed plaintiffs' antitrust claims. The court affirmed to the extent that plaintiffs' theory posits a delay in the marketing of generic alternatives to ACTOS by all the generic applicants other than Teva, because plaintiffs' theory presupposes that these applicants were aware of Takeda’s allegedly false patent descriptions when they filed their applications, which is not supported by well-pleaded allegations. However, the court concluded that plaintiffs' theory as to Teva does not require any knowledge of the false patent descriptions. Therefore, the court reached other issues as to Teva and found plaintiffs plausibly alleged that Takeda delayed Teva's market entry. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "In re ACTOS End-Payor Antitrust Litigation" on Justia Law

Buccaneer Energy (USA) Inc. sued SG Interests I, Ltd., SG Interests VII, Ltd. (together, “SG”), and Gunnison Energy Corporation (“GEC”) (collectively, “Defendants”) after unsuccessfully seeking an agreement to transport natural gas on Defendants’ jointly owned pipeline system at a price Buccaneer considered reasonable. Specifically, Buccaneer alleged that by refusing to provide reasonable access to the system, Defendants had conspired in restraint of trade and conspired to monopolize in violation of sections 1 and 2 of the Sherman Act, respectively. The district court granted summary judgment to Defendants, concluding that Buccaneer could not establish either of its antitrust claims and that, in any event, Buccaneer lacked antitrust standing. The Tenth Circuit agreed that Buccaneer failed to present sufficient evidence to create a genuine issue of fact on one or more elements of each of its claims, and therefore affirmed on that dispositive basis alone. View "Buccaneer Energy v. Gunnison Energy" on Justia Law