In re Skelaxin (Metaxalone) Antitrust Litigation

292 F.R.D. 544, 2013 WL 4821788, 2013 U.S. Dist. LEXIS 130979
CourtDistrict Court, E.D. Tennessee
DecidedJune 10, 2013
DocketNo. 1:12-md-2343
StatusPublished
Cited by18 cases

This text of 292 F.R.D. 544 (In re Skelaxin (Metaxalone) Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Skelaxin (Metaxalone) Antitrust Litigation, 292 F.R.D. 544, 2013 WL 4821788, 2013 U.S. Dist. LEXIS 130979 (E.D. Tenn. 2013).

Opinion

[546]*546 Order on Direct Purchaser Plaintiffs’ Motion for a Protective Order [Doc. 177]

WILLIAM B. MITCHELL CARTER, United States Magistrate Judge.

I. Introduction

This putative class action is an anti-trust action brought, in part, under Sections 1 and 2 of the Sherman Antitrust Act and Section 4 of the Clayton Act against defendants, King Pharmaceuticals, Inc. (King) and Mutual Pharmaceutical Company, Inc. (Mutual) alleging they illegally delayed entry of a certain generic drug into the open market, thereby causing wholesalers of the drug to suffer damages. This matter comes before the undersigned on the motion of the Direct Purchaser Plaintiffs (DPPs) for a protective order directing defendants to withdraw twenty-five identical subpoenas, most of which have been served on absent members of the putative DPP class. [Doc. 177]. Some of the subpoenas have, however, been served on entities that are not putative members of the DPP class (hereinafter referred to as “nonmembers”.) As to these nonmembers, defendants assert the DPP representatives have no standing to challenge the subpoenas. The undersigned agrees, and a protective order as to these entities will be denied.

As to the absent members of the putative DPP class (herein after referred to as “absent members”), the primary issue raised by this motion is whether the defendants are entitled to “down-stream discovery” from them. Rejecting the holding of Valley Drug Company v. Geneva Pharmaceuticals, Inc., 350 F.3d 1181 (11th Cir.2003), the undersigned Magistrate Judge concludes downstream discovery is not relevant to the DPPs’ damages of class certification. However, it is unclear whether downstream discovery is relevant to the Indirect Purchaser Plaintiffs’ damages; therefore, I will reserve ruling on this request pending receipt of more information from the parties.

Request Nos. 6, 7, and 8 of the subpoenas seek information that is not relevant to the claims or defenses of the action, ventures into unnecessary satellite litigation, and pointedly seeks matters protected by the attorney-client privilege and the work product doctrine. A protective order will be issued for the absent DPP members as to these requests.

Finally, the undersigned concludes Request No. 1 of the subpoenas asks for relevant information. The DPPs, however, contend that defendants already have this information and that requiring the absent members to produce it would be duplicative [547]*547and overly burdensome. The undersigned will reserve ruling on this request pending receipt of more information from the parties.

II. Background

This action centers on the alleged collaborations between King Pharmaceuticals, Inc. (King) and Mutual Pharmaceutical Company, Inc. (Mutual) to delay the entry of the generic form of a muscle relaxant called metaxal-one into the open market. Metaxalone is manufactured and sold by King under the brand-name, Skelaxin. Various anti-trust actions filed across the country against King and Mutual under Sections 1 and 2 of the Sherman Antitrust Act and seeking damages under Section 4 of the Clayton Act have been consolidated into this one multidistriet litigation. Motions for class certification are pending before the Court, and the putative class has been divided into three groups: DPPs, the Indirect Purchasers for Resale (IPPs), and the End Payor Plaintiffs (End Payors). The DPPs are primarily wholesalers who allege they purchased Skelaxin directly from King during the class period. The IPPs are primarily retail pharmacies who allege they purchased Skelaxin from the wholesalers, the DPPs, during the class period. Finally, the End Payors are primarily health and welfare benefit funds, trust funds, and insurance companies who allege they purchased and/or provided reimbursement for Skelaxin or its generic equivalent.

The undersigned will briefly recount the plaintiffs’ claims to the extent necessary to address the discovery issues at hand. The plaintiffs’ claims in this action are set forth in detail in the District Court’s memorandum addressing the defendants’ motion to dismiss. (See Court’s Memorandum, Doe. 200).

Plaintiffs allege the following: The FDA approved the sale and marketing of Skelaxin in 1962. The patent on the active ingredient of Skelaxin, metaxalone, expired in or around 1979. The then patent holder for metaxal-one, pharmaceutical company Elan, took steps to delay entry into the market of generic metaxalone by various means, including filing a sham patent application concerning an allegedly new means of ingesting metaxal-one. In 2001, vai’ious manufacturers began to seek approval of their generic metaxalone products. One of those generic manufacturers was Mutual. In June 2003, King acquired the rights to Skelaxin, specifically one patent for metaxalone and another pending patent related to metaxalone. Plaintiffs allege that this second patent was invalid and that King knew it. Plaintiffs further allege that, beginning in 2004, King engaged in a pattern and practice of filing sham patent infringement suits against companies attempting to manufacture a generic metaxal-one product and baseless petitions with the FDA to halt or delay the entry of same into the market. In 2005, King began negotiations with those companies, including Mutual, to settle the infringement suits by paying large sums of money to them in exchange for the companies’ agreements not to manufacture a generic metaxalone product. On December 6, 2005, King and Mutual entered into just such an agreement. Mutual also agreed to aid King in its efforts to delay other companies’ entries into the market of a generic metaxalone product. Plaintiffs claim King has paid Mutual in excess of $20 million for this purpose. As a result of King’s pattern of filing invalid patent infringement suits against companies attempting to introduce a generic metaxalone product into the market and King’s pattern of filing baseless FDA petitions concerning generic metaxal-one products, a generic metaxalone product was not released into the market until April 9, 2010. Finally, plaintiffs allege defendants’ unlawful conduct forced them to pay substantial overcharges to purchase Skelaxin during the relevant class period.

Between April 22, 2013 and April 25, 2013, defendants caused to be issued from various district courts throughout the United States twenty-five subpoenas duces tecum. The subpoenas each asked for the same 11 categories of documents to be produced. (See Doc. 179-1 for a list of the document requests and the DPPs objections to them). On May 8, 2013, the DPPs’ class representatives; Professional Drug Company, Inc. (“Professional Drug”), Meijer, Inc. and Meijer Distribution, Inc. (collectively, “Meijer”), Rochester Drug Co-Operative, Inc. (“Rochester”), Ahold USA, Inc. (“Ahold”), and Stephen L. LaFrance Holdings, Inc. and its wholly-owned subsidiary Stephen L. LaFrance [548]*548Pharmacy, Inc. d/b/a/ SAJ Distributors (collectively “LaFrance”), moved under Fed. R. Civ.P. 26 for an order directing the Defendants King Pharmaceuticals, Inc. (“King”) and Mutual Pharmaceutical Company, Inc. (“Mutual”) to withdraw the twenty-five subpoenas they had served.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
292 F.R.D. 544, 2013 WL 4821788, 2013 U.S. Dist. LEXIS 130979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-skelaxin-metaxalone-antitrust-litigation-tned-2013.