In re Wellbutrin XL Antitrust Litigation

260 F.R.D. 143, 2009 U.S. Dist. LEXIS 66676, 2009 WL 2356864
CourtDistrict Court, E.D. Pennsylvania
DecidedJuly 30, 2009
DocketCivil Action No. 08-2433 (indirect)
StatusPublished
Cited by70 cases

This text of 260 F.R.D. 143 (In re Wellbutrin XL Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Wellbutrin XL Antitrust Litigation, 260 F.R.D. 143, 2009 U.S. Dist. LEXIS 66676, 2009 WL 2356864 (E.D. Pa. 2009).

Opinion

MEMORANDUM

McLAUGHLIN, District Judge.

The plaintiffs are a group of indirect purchasers of Wellbutrin XL, a once-a-day antidepressant, who are suing the producers of Wellbutrin XL, Biovail Corp., Biovail Laboratories, Biovail Laboratories International (together, “Biovail”), and its distributors, SmithKline Beecham Corp. and GlaxoS-mithKline PLC (together, “GSK”), for illegally conspiring to prevent generic versions of Wellbutrin XL, or buproprion hydrochloride, from entering the American market for that drug.

Plumbers and Pipefitters Local 572 Health and Welfare Fund (“Local 572”), IBEW-NECA Local 505 Health and Welfare Plan (“Local 505”), Painters District Council No. 30 Health and Welfare Fund (“D & C 30”), [148]*148Mechanical Contractors-United Association Local 119 Health and Welfare Plan (“Local 119”), and Bricklayers and Masons Union Local Union No. 5 Ohio Health and Welfare Fund (Local Union No. 5) are trust funds acting as “employee welfare benefit plans” and “employee benefit plans.” These plaintiffs bring suit on the basis of their reimbursement of their members’ purchases of Wellbutrin XL.

The plaintiffs themselves are located in Alabama, Illinois, Tennessee and Ohio. The plaintiffs allege to have members whom they reimbursed for purchases of Wellbutrin XL residing in Alabama, California, Florida, Illinois, Indiana, Nevada, New Jersey, New York, Ohio, Pennsylvania, Tennessee, Texas and Wisconsin. The plaintiffs seek to represent an “end payor” class comprised of other purchasers of Wellbutrin XL throughout the country.

The plaintiffs’ amended complaint includes three counts, each alleging violations of several separate state laws. The first count alleges a violation of state antitrust laws on the basis of alleged monopolization of the American market for buproprion hydrochloride.1 The second count alleges violations of certain states’ consumer protection laws.2 The third count is a claim for unjust enrichment that references the law of no particular jurisdiction.

Biovail and GSK submitted separate motions to dismiss the amended complaint.3 First, the defendants argue that the plaintiffs fail to allege an injury that would provide for standing under the majority of the state laws on which the plaintiffs rely. The defendants contend that the plaintiffs have standing to sue only under the laws of the states where the plaintiffs themselves are located. Second, the defendants argue that the plaintiffs have failed to state claims under the statutes of the various states referenced in counts one and two. Third, the defendants attack the plaintiffs’ claim of unjust enrichment in count three. With respect to count three, Biovail argues that the failure to refer to the law of any particular jurisdiction is fatal to the plaintiffs’ effort to state a claim. GSK echos the Biovail argument and also argues that count three is an impermissible repackaging of the claims in counts one and two and that the plaintiffs’ unjust enrichment claim is barred under the laws of the plaintiffs’ home states.

The plaintiffs argue first that they have standing under Article III of the Constitution to assert claims under each statute referenced in the amended complaint. Opp’n at 13. They assert that they have been injured, that the defendants caused the injury and that their injury will be redressed by a judgment in their favor. They argue that this general assertion is sufficient for a threshold showing of Article III standing.

Next, the plaintiffs argue that, if a standing determination must be made with respect to each state referenced in the amended complaint, and if such a determination is ripe for decision, then they have standing to assert claims under the laws of those states where they are located and where their members [149]*149made purchases of Wellbutrin XL. Opp’n at 15-18. However, the plaintiffs also argue that it would be premature for the Court to make a determination as to their ability to bring suit under the laws of those states where neither they nor their members reside. They argue that such a determination is appropriately handled in the class certification context.

Finally, presuming that they have standing to bring each claim, the plaintiffs argue that should survive a motion under Rule 12(b) (6) for failure to state a claim. The plaintiffs argue that they have adequately stated claims under the laws of the states referenced in counts one and two, as well as in their unjust enrichment claim in count three.

The Court holds that it must make a determination of the plaintiffs’ standing to assert each claim of the amended complaint at this stage of the litigation. The plaintiffs’ argument that they have general Article III standing is insufficient to establish standing with respect to particular claims. The Court finds that the plaintiffs have standing to assert claims only under the laws of those states where the plaintiffs are located or their members reside. The Court will dismiss those claims arising under all other states.

The remaining claims arise under the laws of California, Florida, Illinois, Ohio, Nevada, New York, Tennessee, and Wisconsin. The Court will grant the defendants’ motions to dismiss parts of counts one and two for failure to state a claim. The Court will dismiss claims arising under the antitrust law of Florida, and claims arising under the consumer protection laws of Illinois, Nevada, New York and Ohio. The plaintiffs have conceded their claims under the laws of Pennsylvania and Texas. Opp’n at 47 n. 31.

Finally, because the plaintiffs’ third count for unjust enrichment refers to no law or jurisdiction, the Court will dismiss the plaintiffs’ claims under that count.

I. Legal Background

Certain provisions of federal law relating to the procedures for approving new drugs are at the center of the plaintiffs’ allegations. The plaintiffs claim that Biovail and GSK abused provisions of the Food, Drug and Cosmetic Act, 21 U.S.C. §§ 301-392 (“FDCA”), for the purpose of delaying the marketing of generic versions of their drug Wellbutrin XL.

The FDCA provides two different sets of procedures for the approval of new drugs. First, the manufacturer of a new drug must obtain approval from the Food and Drug Administration (“FDA”) by filing a New Drug Application (“NDA”). This application contains data as to safety and effectiveness. In filing an NDA, manufacturers also list any patents that the manufacturer believes could reasonably be asserted against a generic manufacturer who makes, uses, or sells a generic version of the drug prior to the expiration of the listed patents. These patents are listed in the FDA’s book of Approved Drug Products with Therapeutic Equivalence Evaluations (known as the “Orange Book”). The amended complaint states that the FDA does not exercise tight supervision over the contents of the Orange Book, relying on manufacturers to list patents in good faith. Am. Compl., ¶ 33.

The second approval procedure was established in 1984 by the Hatch-Waxman Amendments. Pub.L. No. 98-417, 98 Stat. 1585 (1984). The purpose of the Amendments was to speed the approval of generic versions of brand-name drugs while respecting brand manufacturers’ patent rights. Generic manufacturers need not file NDAs. Instead, they may file Amended New Drug Applications (“ANDA”).

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260 F.R.D. 143, 2009 U.S. Dist. LEXIS 66676, 2009 WL 2356864, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-wellbutrin-xl-antitrust-litigation-paed-2009.