Sentry Data Sys., Inc. v. CVS Health

379 F. Supp. 3d 1320
CourtDistrict Court, S.D. Florida
DecidedApril 3, 2019
DocketCase No. 18-cv-60257-BLOOM/Valle
StatusPublished
Cited by1 cases

This text of 379 F. Supp. 3d 1320 (Sentry Data Sys., Inc. v. CVS Health) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sentry Data Sys., Inc. v. CVS Health, 379 F. Supp. 3d 1320 (S.D. Fla. 2019).

Opinion

BETH BLOOM, UNITED STATES DISTRICT JUDGE

THIS CAUSE is before the Court upon Defendants CVS Pharmacy, Inc. ("CVS") and Wellpartner, LLC's ("Wellpartner") (together, "Defendants") Motion to Dismiss Counts One, Four, and Five in Plaintiff's Amended Complaint, ECF No. [127] (the "Motion"). Plaintiff Sentry Data Systems, Inc. ("Sentry" or "Plaintiff") filed a response, ECF No. [139] ("Response"), to which Defendants filed a reply, ECF No. [147] ("Reply"). The Court has carefully considered the Motion, all opposing and supporting submissions, the record in this case and the applicable law, and is otherwise *1325fully advised.1 For the reasons set forth below, the Motion is denied.

I. BACKGROUND

The Court set forth a detailed factual background in its previous Order on Defendants' first Motion to Dismiss, ECF No. [115] ("Order"). For purposes of the instant Motion, the relevant facts are set forth below. Plaintiff is a developer and provider of information technology systems that assist certain hospitals and hospital-like entities-which the parties refer to as "covered entities"-in monitoring compliance with a federal drug pricing program, the 340B Program. ECF No [121] ¶ 12 ; see also Public Health Services Act, 42 U.S.C. § 256b. Sentry has developed tracking software to assist covered entities in managing their prescription inventory, tracking reimbursements and rebates, and maintaining records of eligible drugs and patients. Id. ¶¶ 69-71. Sentry's products further help covered entities comply with self-auditing requirements of the 340B Program, as well as respond to reporting inquiries from the Health Resources and Services Administration ("HRSA"). This case arises as a result of CVS's acquisition of Wellpartner, one of Sentry's competitors, and the subsequent announcement by CVS that all covered entities seeking to maintain CVS as a contract pharmacy generally, whether for retail or specialty drugs, must use Wellpartner for their 340B tracking and program administration.

In the initial Complaint, ECF No. [1], Sentry asserted nine causes of action: unlawful tying in violation of 15 U.S.C. § 1 (Count I); violation of Florida's Deceptive and Unfair Trade Practices Act ("FDUTPA") (Count II); breach of contract (Count III); tortious interference with contract (Count IV); tortious interference with business relationships (Count V); misappropriation of trade secrets in violation of 18 U.S.C. § 1836 and Fla. Stat. § 688.002 (Counts VI-VII); Florida common law conversion of confidential information and proprietary information (Count VIII); and Florida common law unfair competition (Count IX). CVS moved to dismiss the entire Complaint, ECF No. [43], and following full briefing and oral argument, ECF No. [111], the Court granted the first motion to dismiss in part. See Order, ECF No. [115]. In pertinent part, the Court determined that Plaintiff had failed to clearly allege a relevant geographic market with respect to its unlawful tying claim and dismissed Plaintiff's Sherman Act claim asserted in Count I. Id. Accordingly, the Court granted Plaintiff leave to replead the Sherman Act claim. Id. The Court denied the motion to dismiss with respect to Plaintiff's tortious interference claims, finding that they were not preempted by the Florida Uniform Trade Secrets Act ("FUTSA") and otherwise adequately pled.

Plaintiff filed its Amended Complaint, ECF No. [121], on September 10, 2018, asserting seven causes of action, including unlawful tying in violation of 15 U.S.C. § 1 (Count I); breach of contract (Count III); tortious interference with contract (Count IV); tortious interference with business relationships (Count V); and misappropriation of trade secrets in violation of 18 U.S.C. § 1836 and Fla. Stat. § 688.002 (Counts VI-VII).3 In the instant Motion, *1326Defendants seek dismissal of the unlawful tying claim asserted in Count I of the Amended Complaint, and Counts IV and V for failure to state a claim, and the tortious interference claim in Count V for the additional reason that it is preempted by FUTSA.

II. LEGAL STANDARD

To survive a motion to dismiss brought pursuant to Federal Rule of Civil Procedure 12(b)(6), a claim "must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face,' " meaning that it must contain "factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Ashcroft v. Iqbal , 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly , 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) ). While a court must accept well-pleaded factual allegations as true, "conclusory allegations ...

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Bluebook (online)
379 F. Supp. 3d 1320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sentry-data-sys-inc-v-cvs-health-flsd-2019.