In re EpiPen Marketing, Sales Practices & Antitrust Litigation

268 F. Supp. 3d 1356
United States Judicial Panel on Multidistrict Litigation·Decided August 3, 2017·No. MDL No. 2785·Published·Cited by 3 cases

Opinion

TRANSFER ORDER

SARAH S. VANCE, Chair

Before’ the Panel: * Plaintiffs in the Nordstrum action listed on Schedule A [1358] and pending in the District of New Jersey-move under 28 U.S.C. § 1407 to centralize pretrial proceedings in this litigation in the District of New Jersey. This litigation consists of five actions pending in the Northern District of Illinois, the District of Kansas, the District of New Jersey, and the Western District of Washington, as listed on Schedule A. All of these actions involve allegations of anticompetitive conduct or unfair methods of competition by one or more Mylan entities1 with respect to the EpiPen, a spring-loaded injector marketed by Mylan that delivers a pre-measured and pre-loaded amount of epinephrine for the emergency treatment of anaphylaxis. In addition to the actions on the motion, the parties have notified the Panel of actions pending in the Southern District of Alabama and in the District of New Jersey that involve related issues.2

Plaintiffs in two of the actions on the motion, as well as the plaintiff in one of the potential tag-along actions, support centralization in the District of New Jersey. Plaintiffs in one of these actions, Western District of Washington Rainey, alternatively suggest that the Panel need only transfer the Northern District of Illinois Aggarwal action to the District of Kansas, and that the remaining actions — which include allegations that defendants engaged in an anticompetitive rebate scheme with respect to pharmacy benefit managers— can proceed separately in the District of New Jersey (following a proposed Section 1404 transfer of Rainey to that district). Plaintiff in a third action on the motion, Aggarwal, also supports centralization, but suggests the Northern District of Illinois as the transferee district.

Plaintiffs in the In re EpiPen Auto-Injector Litigation pending in the District of Kansas oppose centralization. They argue primarily that alternatives to centralization, such as informal coordination among the parties and Section 1404 transfer of the non-Kansas actions to the District of Kansas, are preferable to Section 1407 centralization. If the Panel centralizes this litigation notwithstanding their opposition, the Kansas plaintiffs alternatively suggest the District of Kansas as the transferee district. Plaintiff in the District of New Jersey Sanofi-Aventis U.S. LLC (Sanofi) action takes no position on centralization generally, but opposes inclusion of Sanofi in any MDL. Sanofi argues that its direct competitor action is distinct from the other four actions on the motion, which are putative purchaser class actions. Alternatively, Sanofi suggests the District of New Jersey as the transferee district.

Both the Mylan and the Pfizer defendants initially opposed centralization for much the same reasons proffered by the Kansas plaintiffs. Following denial of a Section 1404 transfer motion in the Sanofi action, defendants changed their position and now support centralization of this litigation in the District of Kansas. Mylan, though, continues to oppose centralization in the event that the Panel does not include the Sanofi action in the MDL. Mylan alternatively supports centralization in the Northern District of Illinois.

On the basis of the papers filed and hearing session held, we find that the ac[1359] tions listed on Schedule A involve common questions of fact, and that centralization in the District of Kansas will serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation. These actions share factual questions arising from Mylan’s alleged dominance in the market for ■ epinephrine auto-injectors and- recent increases of the price for the EpiPen. Plaintiffs allege anti-competitive conduct including, among other things: engaging in a “hard switch” and selling EpiPens only in packs of two; entering into discount agreements with schools that were conditioned on the schools not purchasing competing products; securing multiple overlapping patents on minor changes to the EpiPen and engaging in “sham” patent litigation to forestall generic competition; and paying excessive rebates to commercial insurance companies, pharmaceutical benefits managers, and state-based Medicaid agencies conditioned on those companies and agencies not reimbursing the use of competing products. Plaintiffs assert claims for violation of federal and state antitrust laws, as well as state consumer protection laws. Four of the actions involve overlapping putative classes of EpiPen purchasers. Centralization thus will eliminate duplica-tive discovery; prevent inconsistent pretrial rulings, including with respect to class certification; and conserve the resources of the parties, their counsel, and the judiciary.

Sanofi, which opposes inclusion in this MDL, is correct that there are differences among the actions. Sanofi, for instance, asserts claims for violation of the Sherman Act as a competitor of Mylan in the epinephrine auto-injector market (Sa-nofi sold a product called the Auvi-Q), whereas the other actions are brought on behalf of putative classes of purchasers of the EpiPen. Unique legal theories and factual allegations in a particular action, though, are not significant where all the actions arise from a common factual core. See In re U.S. Office of Personnel Mgmt. Data Sec. Breach Litig., 138 F.Supp.3d 1379, 1380 (J.P.M.L. 2015). Despite the unique claims presented by Sanofi, there is significant factual overlap with the other actions. For example, other actions allege anticompetitive conduct by defendants with respect to the Áuvi-Q, and multiple complaints' allege that Mylan engaged in an anticompetitivé rebate scheme. Given this factual overlap, the litigation taken as a whole is unlikely to benefit from excluding Sanofi from the MDL. To the extent Sanofi presents unique factual and legal issues, the transferee judge has the discretion to address those issues through the use of appropriate pretrial devices, such as separate tracks for discovery and motion practice. Additionally, the transferee judge may recommend Section 1407 remand of Sanofi in advance of other actions if he deems it appropriate. See In re McCormick & Co., Inc., Pepper Prods. Mktg. & Sales Practices Litig., 148 F.Supp.3d 1364, 1366 (J.P.M.L. 2015).

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In re EpiPen Marketing, Sales Practices & Antitrust Litigation, 268 F. Supp. 3d 1356 (jpml 2017).

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