Bristol-Myers Squibb Company v. Connors

CourtDistrict Court, D. Hawaii
DecidedMarch 16, 2020
Docket1:20-cv-00010
StatusUnknown

This text of Bristol-Myers Squibb Company v. Connors (Bristol-Myers Squibb Company v. Connors) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bristol-Myers Squibb Company v. Connors, (D. Haw. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF HAWAII

BRISTOL-MYERS SQUIBB CIVIL NO. 20-00010 JAO-RT COMPANY, et al. ORDER GRANTING Plaintiffs, DEFENDANT’S MOTION TO DISMISS vs.

CLARE E. CONNORS, in her official capacity as the ATTORNEY GENERAL OF THE STATE OF HAWAI‘I,

Defendant.

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS Plaintiffs Bristol-Myers Squibb Company, Sanofi-Aventis U.S. LLC, Sanofi US Services, Inc., and Sanofi-Synthelabo LLC (“Plaintiffs”) filed a Complaint against Clare E. Connors in her official capacity as the Attorney General of the State of Hawai‘i (the “State”). The State moved to dismiss the Complaint, arguing the Court must abstain under Younger v. Harris, 401 U.S. 37 (1971). For the reasons stated below, the motion [ECF No. 33] is GRANTED. I. BACKGROUND This is the second time Plaintiffs have asked a federal court to intervene in their dispute with the State of Hawai‘i playing out in state court. The first time— back in early 2014—Plaintiffs removed the State’s1 lawsuit against them regarding their marketing of Plavix, an anti-platelet prescription drug approved by the Food

and Drug Administration (“FDA”) to reduce heart attacks, strokes, and vascular death. See Hawaii, ex rel. Louie v. Bristol-Myers Squibb Co., Civ. No. 14-00180 HG-RLP, 2014 WL 3427387, at *2 (D. Haw. July 15, 2014) (“Bristol-Myers I”).2

In Bristol-Myers I, the State alleged Plaintiffs engaged in false and deceptive acts in violation of Hawai‘i law, for example: (a) misleadingly marketing Plavix as more effective and safer than competitor drugs; (b) marketing Plavix for uses that had not been shown to be safe or effective; (c) failing to disclose that Plavix

had a diminished or no effect on 30% of the patient population while marketing higher doses of Plavix to these patients despite considerable health risks; and (d) marketing it as a replacement for aspirin, but ignoring or concealing data finding

Plavix only as effective or less effective than aspirin, despite costing one hundred times more. See id. The State sought civil penalties, disgorgement of Plaintiffs’ profits, punitive damages, and declaratory and injunctive relief. See id. at *2–3. The district court remanded Bristol-Meyers I to state court for lack of federal

1 The state action was filed by and through the State’s then-Attorney General, David Louie.

2 See Khoja v. Orexigen Therapeutics, Inc., 899 F.3d 988, 999 (9th Cir. 2018) (stating court may take judicial notice of matters of public record on motion to dismiss). jurisdiction. See id. at *3–16. Now, over five years later, Bristol-Myers I is set for trial in May 2020,3

which prompted Plaintiffs to file this federal action. See ECF No. 1 (“Compl.”) ¶ 17. Plaintiffs bring a single count against the State’s current Attorney General under 42 U.S.C. § 1983 for violating their First Amendment rights. See id. ¶¶ 126–

38. Plaintiffs’ lengthy Complaint details why the state action is meritless, contends that the State’s position in that suit is unsupported by the facts or medical evidence and conflicts with the FDA’s position on Plavix, and characterizes the state action as a ploy for private attorneys to profit rather than a suit motivated by any

legitimate concern for the health and safety of the State’s residents. See generally Compl. In the state action, the State claims that any Plavix label that does not have a

warning about the ineffectiveness of the drug among certain populations and the need for genetic testing to identify patients in that population is false or misleading. See id. ¶ 3. In this action, Plaintiffs claim that those warnings are unsupported by the evidence, controversial, and amount to improperly compelled

speech. See id. ¶¶ 88–89, 126–38. Plaintiffs also claim that the prospect of a verdict against them in the state action—incurring large penalties for engaging in

3 Plaintiffs’ Complaint indicates trial is scheduled for April 2020, see Compl. ¶ 17, but the State’s Reply reports the trial date is now May 2020, see ECF No. 38 at 6. their own, truthful speech about Plavix without any proof of harm or malice— impermissibly chills their ability to engage in scientific debates about Plavix and

other products, all in violation of their First Amendment rights. See id. Plaintiffs therefore ask this Court to declare that the state action violates their First Amendment rights and enjoin the State from proceeding with the state action or

proceeding with the action using private counsel. See id. at 52–53. The State, in turn, asks the Court to abstain from exercising jurisdiction over this federal action under Younger, arguing that because Plaintiffs only seek declaratory and injunctive relief, the appropriate remedy is to dismiss the Complaint rather than stay the case.

See ECF Nos. 33, 33-1. Plaintiffs oppose the State’s motion to dismiss. See ECF No. 36. II. DISCUSSION

“The doctrine of abstention involves a decision by a federal court to decline to exercise jurisdiction over the underlying claims for reasons of comity.” Washington v. Los Angeles Cty. Sheriff’s Dep’t, 833 F.3d 1048, 1058 (9th Cir. 2016) (citations omitted). In civil cases, Younger abstention is appropriate where a

state court proceeding (1) is ongoing; (2) is a quasi-criminal enforcement action or involves a state’s interest in enforcing the orders and judgments of its courts; (3) implicates important state interests; (4) provides an adequate opportunity to raise

federal challenges; and (5) would be enjoined by the federal court action or where the federal proceeding would have the practical effect of doing so, and no exception to Younger applies. See Rynearson v. Ferguson, 903 F.3d 920, 924 (9th

Cir. 2018). The parties dispute whether the State has met the second and third prongs, and whether an exception to Younger applies. A. Quasi-Criminal Enforcement Action

The State contends the state action against Plaintiffs is a quasi-criminal enforcement proceeding. In Sprint Communications, Inc. v. Jacobs, the Supreme Court summarized its precedent regarding the nature of quasi-criminal civil enforcement actions:

Such enforcement actions are characteristically initiated to sanction the federal plaintiff, i.e., the party challenging the state action, for some wrongful act. In cases of this genre, a state actor is routinely a party to the state proceeding and often initiates the action. Investigations are commonly involved, often culminating in the filing of a formal complaint or charges.

571 U.S. 69, 79–80 (2013) (citations omitted). The state action here—a civil enforcement action brought by the Attorney General seeking civil penalties, injunctive relief, and damages for unfair and deceptive acts in violation of Hawai‘i consumer protection law—thus falls within this category of cases. See, e.g., Monster Beverage Corp. v. Herrera, Case No. EDCV 13-00786-VAP (OPx), 2013 WL 12131740, at *4 (C.D. Cal. Dec. 16, 2013), aff’d, 650 F. App’x 344 (9th Cir. 2016) (holding Younger applied when City Attorney filed complaint in state court challenging company’s unfair, deceptive, and unlawful business practices and seeking an injunction, money damages, and civil penalties because the state suit was fundamentally a law enforcement action designed to protect the public rather

than to benefit private parties); TVI Inc. v. Ferguson, CASE NO.

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