Monday, October 27, 2008

D. Mass Certifies Nationwide Class in Case Against Pharmaceutical Manufacturers

The court in In re Pharmaceutical Industry Average Wholesale Price Litigation,
252 F.R.D. 83 (D. Mass. Sept. 26, 2008), certified the requested nationwide class against pharmaceutical manufacturers. Here is Westlaw's synopsis of the case:

Consumers and third-party payors (TPPs) brought suit against pharmaceutical manufacturers alleging that manufacturers fraudulently inflated drug prices by misstating average wholesale prices (AWPs) of their drugs in industry publications in violation of state unfair and deceptive trade practice acts (UDTPAs). Plaintiffs moved for certification of two nationwide classes under the unfair and deceptive trade practice laws of more than thirty states.

Holdings: The District Court, Saris, J., held that:

(1) requirement of state UDTPAs that a plaintiff prove reliance did not preclude certification of nationwide class of third-party payors (TPPs) under MediGap supplemental insurance plans;
(2) nationwide class of consumer and third-party payors for Medicare Part B drugs outside of the Medicare context could not be certified under the state UDTPAs that required reliance; and
(3) superiority requirement for nationwide class certification was satisfied.


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