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| antitrust, franchising & trade regulation section |
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Brand Name Prescription Drug Price Fixing Case
In early 1996, a consumer class action lawsuit was filed in Oakland County Circuit Court against 23 manufacturers of brand-name prescription drugs alleging that the drug manufacturers conspired to fix wholesale prices in violation of the Michigan Antitrust Reform Act ("MARA"). The plaintiff has asked the court to certify a class of plaintiffs consisting of all consumers who purchased brand-name prescription drugs in Michigan from 1992 to the present (Shirley Wood v. Abbott Laboratories, Civil No. 96-512561-CZ (Oakland Cir.) (J. Andrews). Although such indirect purchaser claims are not allowed to be raised under federal antitrust law, MARA and statutes in some other states do authorize such claims. Thus, consumer class actions have been filed against the drug manufacturers in numerous other states. In addition, several retailers of brand-name prescription drugs (direct purchasers) have filed suit against the drug manufacturers in federal court in Chicago. In the Michigan case, Judge Andrews has scheduled a hearing for the end of March on the plaintiff's motion to certify the class of Michigan consumers. A District of Columbia court recently certified a class of indirect purchasers in a similar consumer case (Goda v. Abbott Laboratories, Civil No. 01445-96 (D.C. Super. 2/3/97)). However, courts in other jurisdictions have refused to certify classes in consumer cases. |
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