In re Ampicillin Antitrust Litigation

55 F.R.D. 269, 16 Fed. R. Serv. 2d 224, 1972 U.S. Dist. LEXIS 13823, 1972 Trade Cas. (CCH) 73,966
District Court, District of Columbia·Decided May 9, 1972·No. M.D.L. No. 50; Misc. No. 45-70·Published·Cited by 27 cases

Opinion

OPINION

SIRICA, Chief Judge.

This litigation currently comprises forty-six actions, either filed in this district or transferred here for coordinated or consolidated pretrial proceedings under 28 U.S.C. § 1407. These suits seek damages1 and, in some instances, various types of equitable relief from the defendants, Bristol-Myers Company, Beecham Group Limited and Beecham, Inc., for alleged violations of the Antitrust Laws with respect to ampicillin and other semisynthetic penicillin drugs. Specifically, plaintiffs claim defendants have fraudulently procured and enforced the ampicillin patent and have engaged in a conspiracy to restrain and monopolize trade in ampicillin and other semi-synthetic penicillins with resultant overcharges to the plaintiffs.2 Forty of these actions urge the establishment of class actions by the Court pursuant to Fed.R.Civ.P. 23.3 This issue has been fully briefed and argued at length by the [272] excellent counsel involved in these cases.4

In the following analysis and treatment of the proposed classes in light of the prerequisites to maintenance of class actions set out in Rule 23, the Court expresses no opinion on the merits of any of these actions, or on the claims with respect to liability or damages of any of the parties. The class action determination is viewed herein as a procedural ruling which ought to be made in the interest of defining the potential scope of the litigation as a whole and permitting these pretrial proceedings to go forward with more certainty on the part of Court and counsel. The merits of the claims of any party or class will be left to subsequent discovery and proof on the merits. Furthermore, the Court expressly reserves the right under Rule 23(c) (1) to alter or amend its decision concerning the proposed classes in light of unanticipated developments during the course of these proceedings.

For the purposes of their consideration under Rule 23, the proposed classes may be grouped in three categories:

I. Government entities and consumers.
II. Non-government hospitals and institutions.
III. Wholesale and retail druggists.

I. GOVERNMENT ENTITIES AND CONSUMERS

Twenty-five states5 and Puerto Rico have brought suits in which each state seeks to represent the class of public entities, consisting of the state, cities, counties, and other political subdivisions, including hospital districts, as well as the class of citizen consumers resident within its jurisdiction.

Similarly, each of two city plaintiffs 6 seeks to represent a single consumer class consisting of all of its residents who have purchased the drugs in suit.

Additionally, the City of Philadelphia, joining with a state and several other cities and counties,7 seeks in a single action to represent one nationwide class consisting of all ultimate consumers, and all states, political subdivisions and other governmental entities across the United States which have purchased or subsidized the purchase of ampicillin or other semisynthetic penicillins. The State of Illinois has moved to amend its complaint to permit it to represent subsantially the same nationwide classes of public entities and consumers, in addition to its own statewide classes. Both Philadelphia and Illinois exclude from their proposed nationwide classes the governmental entities and consumers located in states where statewide class actions by the respective attorneys general may be sustained.

Finally, two private parties8 who bought ampicillin by prescription seek [273] together to represent a nationwide class of individual consumers of ampicillin and other semisynthetic penicillin drugs.

A. Requirements of Rule 23(a)

The proposed class actions must first satisfy the four prerequisites of Rule 23(a).9 It is clear that the proposed statewide and citywide classes of individual consumers encompass memberships sufficiently large so that joinder of each member is impracticable. For example, a statewide government entities class may consist of more than a hundred city, county and state entities, including city, county and state hospital and welfare districts. See, e. g., In Re Coordinated Pretrial Proceedings in Antibiotic Antitrust Actions (Government Entity Class Actions), 333 F.Supp. 267 (S.D.N.Y.1971); Iowa v. Union Asphalt & Roadoils, Inc., 281 F.Supp. 391 (S.D. Iowa 1968). Similarly, statewide and citywide classes of individual consumers may include thousands. Numerousness in the nationwide classes is beyond dispute, but the Court finds certain difficulties with regard to the representation and management of these classes which shall be discussed later in this opinion.

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In re Ampicillin Antitrust Litigation, 55 F.R.D. 269, 16 Fed. R. Serv. 2d 224, 1972 U.S. Dist. LEXIS 13823, 1972 Trade Cas. (CCH) 73,966 (D.D.C. 1972).

55 F.R.D. 269 (In re Ampicillin Antitrust Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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