Academy of Allergy & Asthma v. Amerigroup Tennessee, Inc.

CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 13, 2026
Docket24-5153
StatusPublished

This text of Academy of Allergy & Asthma v. Amerigroup Tennessee, Inc. (Academy of Allergy & Asthma v. Amerigroup Tennessee, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Academy of Allergy & Asthma v. Amerigroup Tennessee, Inc., (6th Cir. 2026).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 26a0009p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ ACADEMY OF ALLERGY & ASTHMA IN PRIMARY CARE, │ Plaintiff, │ │ UNITED BIOLOGICS, LLC, dba United Allergy │ Services, > No. 24-5153 │ Plaintiff-Appellant, │ │ v. │ │ │ AMERIGROUP TENNESSEE, INC., dba Amerigroup │ Community Care; PHYSICIANS’ MEDICAL │ ENTERPRISES, LLC, dba PME Communications, LLC; │ ALLERGY ASSOCIATES, P.A., dba Allergy, Asthma and │ Sinus Center, P.C.; NED DELOZIER, │ Defendants-Appellees. ┘

On Petition for Rehearing En Banc United States District Court for the Eastern District of Tennessee at Knoxville. No. 3:19-cv-00180—Travis Randall McDonough, District Judge.

Decided and Filed: January 13, 2026

Before: SUTTON, Chief Judge; KETHLEDGE and MURPHY, Circuit Judges.

_________________

COUNSEL

ON PETITION FOR REHEARING EN BANC and REPLY: Casey Low, Dillon J. Ferguson, Michael H. Borofsky, Sarah Goetz, PILLSBURY WINTHROP SHAW PITTMAN LLP, Austin, Texas, for Appellant. ON RESPONSE: Martin J. Bishop, Kevin Tessier, CROWELL & MORING LLP, Chicago, Illinois, for Appellees.

The court delivered an ORDER denying the petition for rehearing en banc. BUSH, J. (pp. 3–18), delivered a statement respecting the denial of the petition for rehearing en banc. MURPHY, J. (pp. 19–24), also delivered a separate opinion, in which SUTTON, C.J. and KETHLEDGE, J., joined, concurring in the denial of the petition for rehearing en banc. No. 24-5153 Academy of Allergy & Asthma et al. v. Page 2 Amerigroup Tenn., Inc., et al.

ORDER _________________

The court received a petition for rehearing en banc. The original panel has reviewed the petition for rehearing and concludes that the issues raised in the petition were fully considered upon the original submission and decision.

The petition was then circulated to the full court. No judge requested a vote on the suggestion for rehearing en banc.

Therefore, the petition is denied. No. 24-5153 Academy of Allergy & Asthma et al. v. Page 3 Amerigroup Tenn., Inc., et al.

__________________

STATEMENT __________________

JOHN K. BUSH, Circuit Judge, respecting the denial of rehearing en banc. This case involves an alleged conspiracy to restrain trade in the market for allergy testing and immunotherapy in Tennessee. The First Amended Complaint (FAC) states that defendant- appellee Allergy Associates has a 70% market share and that plaintiff-appellant United Allergy challenged this dominance when it teamed up with primary care physicians (PCPs) to create new competition. According to United Allergy, it provided staffing and supplies so that PCPs could provide similar services to those offered by Allergy Associates. But the venture between United Allergy and the PCPs failed. The reason, according to the FAC, was that Allergy Associates made unfounded accusations to several insurance companies (who are also named defendants) that the PCPs’ practices were fraudulent and encouraged those insurers to deny reimbursement to PCPs for services provided jointly by United Allergy and the PCPs. The FAC alleges what amounts to a group boycott by the insurers that Allergy Associates orchestrated. R. 103, FAC, PageID 2715.

United Allergy came to federal court for relief, but the panel in this appeal found no antitrust standing. It characterized United Allergy as only a supplier to the PCPs. United Allergy therefore lacked a direct contractual relationship with Allergy Associates or the insurance companies, which the panel believes is required. The panel relied on Illinois Brick Co. v. Illinois, which held that indirect purchasers (i.e., customers of the defendant’s victim who was overcharged) cannot sue for damages under the Sherman and Clayton Acts based on the victim passing on the overcharge to those customers. 431 U.S. 720, 735–36 (1977).

I respect the panel’s decision as reasonably applying Supreme Court precedent. But I write separately to suggest that this case may warrant the Court’s review to clarify the parameters of Illinois Brick in the context of an alleged group boycott and plaintiffs that operated essentially as part of an apparent joint venture.

As discussed below, there is another competing view of the precedent which aligns with the pragmatic view of antitrust law that the Supreme Court generally takes. See generally Am. No. 24-5153 Academy of Allergy & Asthma et al. v. Page 4 Amerigroup Tenn., Inc., et al.

Needle, Inc. v. Nat’l Football League, 560 U.S. 183, 191 (2010) (“[W]e have eschewed such formalistic distinctions in favor of a functional consideration of how the parties involved in the alleged anticompetitive conduct actually operate.”). Under this approach, United Allergy has alleged enough to show antitrust standing.

The panel’s holding to the contrary may make it very difficult, if not impossible, for participants in a joint venture—how I characterize the arrangement between United Allergy and each PCP1—to bring Sherman Act claims. A basic premise of federal antitrust law is that even the smallest companies should have the opportunity to enter a market without illegal interference by incumbents. And sometimes a joint venture is the most efficient means—indeed, it may be the only way—through which new competitors can challenge an entrenched entity.

I fear the panel’s decision will undermine important legal protections for such new market entrants. As a result, consumers will be harmed. As Judge Kethledge emphasized in his concurrence to the panel opinion, the majority’s decision may be an eminently defensible application of governing precedent. But as he also noted, if the pleaded allegations are true, patients will pay more and suffer from less-available allergy and immunotherapy treatments, particularly in rural areas. More broadly, I worry that consumers in general may suffer because the panel may have created a virtually insurmountable hurdle for certain joint-venture participants to sue when a group boycott drives them out of a market.

I.

My concerns with the panel opinion are four-fold. First, I do not think a challenge to an alleged group boycott brought by a joint-venture participant (the fact pattern here) raises the calculation-of-damages problem posed by a challenge of an indirect purchaser to an overcharge (the fact pattern of Illinois Brick). Second, the panel’s approach, while faithful to precedent, may be more formalistic than the Supreme Court would follow if it reviewed this case. Third, the panel opinion reads the Court’s precedents that apply Illinois Brick differently than I would. Fourth, the

1 In the parties’ home State of Tennessee, a joint venture is “a single business adventure for joint profit, for which purpose they combine their efforts, property, money, skill, and knowledge” but do not “creat[e] a partnership in the legal or technical sense of the term.” Fain v. O’Connell, 909 S.W.2d 790, 793 (Tenn. 1995) (cleaned up). No. 24-5153 Academy of Allergy & Asthma et al. v. Page 5 Amerigroup Tenn., Inc., et al.

panel held that Illinois Brick bars a suit for injunctive relief, even though the Court has never endorsed such a holding and other circuits have expressly rejected it.

A.

My first concern is that the panel applied the Illinois Brick rule to a group-boycott case that does not involve overcharge damages.

In Illinois Brick, the Supreme Court sought to mitigate the potential problems with overcharge plaintiffs who bring antitrust actions.

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Academy of Allergy & Asthma v. Amerigroup Tennessee, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/academy-of-allergy-asthma-v-amerigroup-tennessee-inc-ca6-2026.