Alliance Security Products, Inc. v. Fleming Co.

471 F. Supp. 2d 452, 2007 U.S. Dist. LEXIS 5691, 2007 WL 196750
CourtDistrict Court, S.D. New York
DecidedJanuary 26, 2007
Docket05 Civ. 5214(LAK)
StatusPublished
Cited by9 cases

This text of 471 F. Supp. 2d 452 (Alliance Security Products, Inc. v. Fleming Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alliance Security Products, Inc. v. Fleming Co., 471 F. Supp. 2d 452, 2007 U.S. Dist. LEXIS 5691, 2007 WL 196750 (S.D.N.Y. 2007).

Opinion

MEMORANDUM OPINION

KAPLAN, District Judge.

Plaintiffs Alliance Security Products, Inc. (“ASP”) and Alliance Security International, LLC (“ASI”) allege that defendant Fleming and Company, Pharmaceuticals (“Fleming”), misappropriated their idea to manufacture and market a potassium iodide liquid solution to prevent thyroid cancer in children exposed to radiation. Plaintiffs seek to enjoin Fleming *454 from selling a product called ThyroShield, which they claim is their product marketed according to their unique business plan. Fleming moves for summary judgment dismissing the complaint. Plaintiffs move for a preliminary injunction.

Facts

I. Rule 56.1 Statements

A preliminary matter must be addressed before getting to the pertinent facts.

On a motion for summary judgment, the moving party bears the burden of demonstrating that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. In considering such a motion, all facts and inferences reasonably drawn therefrom are construed in favor of the nonmoving party. 1

In addition, Local Civil Rule 56.1 of this Court provides that a party moving for summary judgment must file a concise statement of material facts it claims are undisputed, with each statement of fact followed by a citation to admissible evidence. Each statement then is deemed undisputed for purposes of the summary judgment motion unless the nonmovant specifically denies it, citing to competent evidence. 2

Plaintiffs have failed properly to put many of defendant’s statements of fact into dispute. First, they respond to several of defendant’s statements without references to admissible evidence. 3 Statements responded to in this way are deemed undisputed for purposes of this motion. 4

Second, plaintiffs respond to a number of defendant’s statements by stating that they “lack[ ] knowledge or information sufficient to form a belief as to whether” the statements are true. 5 Such responses are insufficient to put a statement of fact into dispute. Statements responded to in this way are deemed undisputed as well. 6

Finally, plaintiffs respond to many of defendant’s statements by making legal arguments. For example, in paragraph 14, plaintiffs concede that it has been common knowledge for decades that ingesting potassium iodide is a safe way of aiding the prevention of thyroid cancer, but go on to “dispute[ ] any implication that this fact renders Alliance’s confidential information and novel idea ‘common knowledge.’ ” 7 Such legal arguments, which are plentiful in plaintiffs counter-statement, belong in briefs, not Rule 56.1 statements, and so are disregarded in determining whether there are genuine issues of material fact. 8

II. Undisputed Facts

In light of the foregoing, the following facts are undisputed for purposes of this motion unless otherwise noted.

*455 A. Potassium Iodide

It has been well known, at least since the late 1970s, that ingesting potassium iodide (“KI”) is a safe and effective way to block the uptake of radioactive iodine by the thyroid gland. It therefore aids in preventing the development of thyroid cancer in those exposed to radiation. 9

1. PIMA

Defendant develops, manufactures, and sells ethical pharmaceutical and over-the-counter products. 10 Beginning in 1968, it manufactured a raspberry flavored syrup called PIMA, 11 which originally was marketed as a cough expectorant, 12 but was known to have additional valuable properties because it contained KI. 13

In 1986, Fleming supplied PIMA to the victims of the Chernobyl disaster to be used as a thyroid protectant. 14 In 1998, Fleming contacted the Nuclear Regulatory Commission (“NRC”), which had recommended creating national stockpiles of KI to improve government preparedness for nuclear disasters, 15 and asked to be considered as a provider of KI for these stockpiles. 16 At least as early as 1999, Fleming included in its PIMA product insert a paragraph indicating that the syrup could be used as a radiation protectant for the thyroid gland. 17

2. Public Awareness

Federal agencies have been advocating the stockpiling of KI products near nuclear power plants since the 1980s. 18 Public *456 awareness of the potential need for KI grew after the September 11, 2001 terrorist attack. Numerous politicians and news commentators began discussing the possibility of terrorist attacks on U.S. nuclear facilities and the need to be prepared for the medical emergencies that could follow. Several commentators mentioned specifically the need to stockpile KI, 19

In late 2001, presumably in response to this heightened awareness, the FDA published a guidance document in which it outlined procedures for administering KI to children in the event of a radiation emergency. The document listed safe dose sizes for children of various ages and recommended dissolving solid tablets in liquid to ease ingestion, especially when administering KI to babies. 20

3. Fleming Contacts the NRC

In early 2002, Fleming offered again to provide the NRC with PIMA for government stockpiles of KI. 21 It was told, however, that the NRC had awarded a two-year contract for KI pills to a company called Anbex, in part because the NRC’s “bid specs required that the manufacturer have FDA approval for their drug product,” 22 which Fleming lacked for PIMA. At that time, PIMA was available only by prescription and was not FDA-approved for use as a radiation protectant. Nor had it been sold with pediatric droppers or child-safe caps. 23

B. The Parties Meet

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Cite This Page — Counsel Stack

Bluebook (online)
471 F. Supp. 2d 452, 2007 U.S. Dist. LEXIS 5691, 2007 WL 196750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alliance-security-products-inc-v-fleming-co-nysd-2007.