Plaintiffs' tactics dispense a bitter pill to defendants; insiders say drug makers settled class action after they learned what antitrust experts said about plaintiffs' case

Article Abstract:

Several major drug manufacturers were pushed toward settling a $3 billion class action suit by plaintiffs' tactics including possible use of expert witnesses labelling the companies as an illegal industry cartel. Although the defendants' decision to settle for $600 million may have been prompted by the suit's costs, some analysts believed the settlement was due to fear of losing a jury trial due to the negative expert testimony. The independent pharmacists' suit accused the drug makers of price-fixing and sought to end the industry's two-tiered pricing system.

Pharmaceutical Preparation Manufacturing, Pharmaceutical preparations, Ethical Preparations, Analysis, Usage, Class actions (Civil procedure), Compromise and settlement, Class action lawsuits, Settlements (Law), Drugs, Evidence, Expert, Expert evidence, Price fixing

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An expert's bad day; poor testimony by Nobel Prize winner cited as key reason judge threw out antitrust case

Article Abstract:

Economics professor and Nobel laureate Robert E. Lucas did not help the plaintiff's side in the $45 bil antitrust class action against the 24 largest US drug manufacturers and 6 pharmaceutical wholesalers. Lucas, who has gained worldwide fame for his thory of "rational expectations," offered courtroom testimony so weak that the defense asked that much of it be stricken under the Daubert minimal reliability rule. The case was In re Brand Name Prescription Drug Antitrust Litigation.

United States, Antitrust law, Testimony, lucas, Robert E.

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Insurer's self-dealing suit settled; lawyers following fallout of failed Columbia/HCA deal

Article Abstract:

A suit against Columbia/HCA Healthcare Corp. by Medical Mutual of Ohio alleges that the company's joint venture for $299.5 mil, much less than fair market price, while at the same time negotiating lucrative severance deals for themselves, was a breach of fiduciary duty by the company's CEO and general counsel. For-profit health care institutions may now rethink their strategies of making deals with mutual or non-profit institutions.

Direct Health and Medical Insurance Carriers, Hospital and medical service plans, Medical Care Insurance, Insurance industry, Health insurance, COL, HCA Inc., Fiduciary duties

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