Health Care Service Corporation, a Mutual Legal Reserve Company v. Jazz Pharmaceuticals, Inc. et al
Case Summary
On February 17, 2022, Health Care Service Corporation, a Mutual Legal Reserve Company (“HCSC” or “Plaintiff”), represented by Matthew S. Weiler of Schneider Wallace Cottrell Konecky LLP filed an antitrust lawsuit against Jazz Pharmaceuticals, Inc.; Jazz Pharmaceuticals Ireland Limited; Jazz Pharmaceuticals Public Limited Company; Hikma Pharmaceuticals PLC; and others, (collectively, “Defendants”), seeking damages, restitution and disgorgement for the Defendants’ alleged antitrust violations. This case was filed in U.S. District Court in the Northern District of California with Judge Richard Seeborg and Judge Susan van Keulen presiding.
In their complaint, the Plaintiff alleged that, “Defendants, the brand manufacturer of Xyrem and several putative competitors, abused the patent laws by allocating the market for sodium oxybate, a drug that was discovered nearly 150 years. Sodium oxybate, sold under the brand name Xyrem (also known as γ- hydroxybutyric acid (“GHB”)) is a naturally occurring substance found in the central nervous system. Xyrem is manufactured by Jazz Pharmaceuticals, Inc and its affiliates (“Jazz”). Xyrem has historically been Jazz’s main source of revenue, making up 70% or more of its revenues since 2007. Jazz’s growth and profits have been entirely linked to its ability to increase prices on Xyrem and keep the market to itself. To prevent generic competition and unlawfully maintain this monopoly.”
The Plaintiff further alleged that, “Jazz manipulated an FDA safety program meant to mitigate safety risks of certain drugs (“REMS”), engaged in sham patent litigation, abused the REMS process to further frustrate generic competitors and agreed with other Defendants to delay generic entry in exchange for allocating the generic market for AB-rated generic Xyrem. All the while, Jazz imposed a series of gobsmacking price hikes that would not have been possible without its brazen antitrust violations. This scheme caused HCSC to pay inflated prices for Xyrem from July 17, 2017 through the present and continuing until the anticompetitive effects of the Defendants’ unlawful conduct cease. By agreeing to this, Hikma delayed its allegedly impending entry into Jazz’s market over six years until at least July 1, 2023 (i.e., the end of the six-month term for Hikma’s AG). HCSC seeks damages for the overcharges it paid as a result of Defendants’ conduct as well as injunctive relief to prevent the Defendants from continuing their unlawful agreements.”
There are eight claims for relief laid down by the Plaintiff. The first five claims alleged deal with conspiracy and combination in restraint of trade under state law because the Plaintiff alleged that there was no legitimate, non-pretextual, pro-competitive business justification for this reverse payment agreement that outweighs its harmful effect on HCSC and competition. The Plaintiff further alleged that even if there were some conceivable and cognizable justification, the payment was not necessary to achieve the purpose. The sixth claim alleged deals with monopolization and Monopolistic Scheme under State Law. The seventh and eighth claims alleged deal with Declaratory and Injunctive relief for violations of section 16 of the Clayton Act, 15 U.S.C. §§ 1-2, 26) and unjust enrichment.
In their prayer for relief, the Plaintiff has requested the Court for an award of HCSC’s overcharge damages, in an amount to be proven and determined at trial and trebled as provided by law; for pre- and post-judgment interest with disgorgement, restitution, and the creation of a constructive trust to remedy Defendants’ unjust enrichment; and an award of all other legal or equitable relief as the Court deems just and proper.
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Case Details
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Case Number:
3:22-CV-00993
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Filing Date:
02/17/2022
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Case Status:
Pending - Other Pending
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Case Type:
Other - Antitrust
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Court:
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Courthouse:
Judge Details
Presiding Judge
Richard Seeborg
Referral Judge
Susan van Keulen
Party Details
Plaintiff
Health Care Service Corporation
Defendants
Jazz Pharmaceuticals, Inc.
Jazz Pharmaceuticals Ireland Limited
Jazz Pharmaceuticals Public Limited Company
Hikma Pharmaceuticals PLC
Hikma Pharmaceuticals USA Inc.
Hikma Labs, Inc.
Eurohealth (USA), Inc.
Amneal Pharmaceuticals, LLC
PAR Pharmaceutical Inc.,
Lupin Ltd.
Lupin Pharmaceuticals Inc.
Lupin Inc.
Attorney/Law Firm Details
Plaintiff Attorneys
Matthew Sinclair Weiler
Jason H. Kim
Todd M. Schneider
Defendant Attorneys
Jeffrey E. Faucette
Heather Marie Burke
Michael John Shipley
Benjamin Gardner Bradshaw
Brett Johnston Williamson
Stephen Joel McIntyre
Court Documents
(#25) ORDER granting #22 Stipulation re Protective Order. Signed by Judge Susan van Keulen on 4/13/2022. (svklc1, COURT STAFF) (Filed on 4/13/2022) (Entered: 04/13/2022)
(#24) ORDER granting #21 Stipulation re Operative Discovery Agreements. Signed by Judge Susan van Keulen on 4/13/2022. (svklc1, COURT STAFF) (Filed on 4/13/2022) (Entered: 04/13/2022)
(#23) ORDER REFERRING CASE to Magistrate Judge Susan van Keulen for Discovery purposes. Signed by Chief Judge Richard Seeborg on 4/13/2022. (rslc3, COURT STAFF) (Filed on 4/13/2022) (Entered: 04/13/2022)
(#22) STIPULATION WITH PROPOSED ORDER JOINT STIPULATION AND [PROPOSED] PROTECTIVE ORDER filed by Health Care Service Corporation. (Weiler, Matthew) (Filed on 4/12/2022) (Entered: 04/12/2022)
(#21) STIPULATION WITH PROPOSED ORDER STIPULATION AND [PROPOSED] ORDER RE OPERATIVE DISCOVERY AGREEMENTS filed by Health Care Service Corporation. (Weiler, Matthew) (Filed on 4/12/2022) (Entered: 04/12/2022)
(#19) Corporate Disclosure Statement by Jazz Pharmaceuticals Ireland Limited, Jazz Pharmaceuticals Public Limited Company, Jazz Pharmaceuticals, Inc. (Faucette, Jeffrey) (Filed on 3/22/2022) (Entered: 03/22/2022)
(#18) Defendants Lupin Ltd., Lupin Pharmaceuticals Inc., and Lupin Inc.'s ANSWER to Complaint with Jury Demand byLupin Inc., Lupin Ltd., Lupin Pharmaceuticals Inc.. (Shipley, Michael) (Filed on 3/22/2022) (Entered: 03/22/2022)
(#17) Corporate Disclosure Statement by Lupin Inc., Lupin Ltd., Lupin Pharmaceuticals Inc. identifying Corporate Parent Lupin Ltd., Corporate Parent Nanomi BV for Lupin Inc.; Corporate Parent Lupin Ltd., Other Affiliate Lupin Inc. for Lupin Pharmaceuticals Inc.. (Shipley, Michael) (Filed on 3/22/2022) (Entered: 03/22/2022)
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(#10) NOTICE of Appearance by Heather Marie Burke on Behalf of Defendants Eurohealth (U.S.A.), Inc., Hikma Pharmaceuticals USA Inc., Hikma Labs Inc., and Hikma Pharmaceuticals PLC. (Burke, Heather) (Filed on 3/21/2022) (Entered: 03/21/2022)
(#9) ANSWER to Complaint by Jazz Pharmaceuticals Ireland Limited, Jazz Pharmaceuticals Public Limited Company, Jazz Pharmaceuticals, Inc.. (Faucette, Jeffrey) (Filed on 3/18/2022) (Entered: 03/18/2022)
(#8) Defendant Par Pharmaceutical, Inc.'s ANSWER to Complaint with Jury Demand byPAR Pharmaceutical Inc.,. (Williamson, Brett) (Filed on 3/18/2022) (Entered: 03/18/2022)
(#7) Certificate of Interested Entities by PAR Pharmaceutical Inc., identifying Corporate Parent Endo International plc for PAR Pharmaceutical Inc.,. (Bradshaw, Benjamin) (Filed on 3/18/2022) (Entered: 03/18/2022)
Docket Entries
Docket(#25) ORDER granting #22 Stipulation re Protective Order. Signed by Judge Susan van Keulen on 4/13/2022. (svklc1, COURT STAFF) (Filed on 4/13/2022) (Entered: 04/13/2022)
[-] Read LessDocket(#24) ORDER granting #21 Stipulation re Operative Discovery Agreements. Signed by Judge Susan van Keulen on 4/13/2022. (svklc1, COURT STAFF) (Filed on 4/13/2022) (Entered: 04/13/2022)
[-] Read LessDocketCASE REFERRED to Magistrate Judge Susan van Keulen for Discovery. (mkl, COURT STAFF) (Filed on 4/13/2022) (Entered: 04/13/2022)
[-] Read LessDocket(#23) ORDER REFERRING CASE to Magistrate Judge Susan van Keulen for Discovery purposes. Signed by Chief Judge Richard Seeborg on 4/13/2022. (rslc3, COURT STAFF) (Filed on 4/13/2022) (Entered: 04/13/2022)
[-] Read LessDocket(#22) STIPULATION WITH PROPOSED ORDER JOINT STIPULATION AND [PROPOSED] PROTECTIVE ORDER filed by Health Care Service Corporation. (Weiler, Matthew) (Filed on 4/12/2022) (Entered: 04/12/2022)
[-] Read LessDocket(#21) STIPULATION WITH PROPOSED ORDER STIPULATION AND [PROPOSED] ORDER RE OPERATIVE DISCOVERY AGREEMENTS filed by Health Care Service Corporation. (Weiler, Matthew) (Filed on 4/12/2022) (Entered: 04/12/2022)
[-] Read LessDocket(#20) CLERK'S NOTICE. The Initial Case Management Conference previously set for 5/19/22 is rescheduled to 5/9/2022 at 10:00 AM in San Francisco, - Videoconference Only. Joint Case Management Statement due by 5/2/2022. (This is a text-only entry generated by the court. There is no document associated with this entry.) (rslc2, COURT STAFF) (Filed on 4/4/2022) (Entered: 04/04/2022)
[-] Read LessDocket(#19) Corporate Disclosure Statement by Jazz Pharmaceuticals Ireland Limited, Jazz Pharmaceuticals Public Limited Company, Jazz Pharmaceuticals, Inc. (Faucette, Jeffrey) (Filed on 3/22/2022) (Entered: 03/22/2022)
[-] Read LessDocket(#18) Defendants Lupin Ltd., Lupin Pharmaceuticals Inc., and Lupin Inc.'s ANSWER to Complaint with Jury Demand byLupin Inc., Lupin Ltd., Lupin Pharmaceuticals Inc.. (Shipley, Michael) (Filed on 3/22/2022) (Entered: 03/22/2022)
[-] Read LessDocket(#17) Corporate Disclosure Statement by Lupin Inc., Lupin Ltd., Lupin Pharmaceuticals Inc. identifying Corporate Parent Lupin Ltd., Corporate Parent Nanomi BV for Lupin Inc.; Corporate Parent Lupin Ltd., Other Affiliate Lupin Inc. for Lupin Pharmaceuticals Inc.. (Shipley, Michael) (Filed on 3/22/2022) (Entered: 03/22/2022)
[-] Read LessDocket(#10) NOTICE of Appearance by Heather Marie Burke on Behalf of Defendants Eurohealth (U.S.A.), Inc., Hikma Pharmaceuticals USA Inc., Hikma Labs Inc., and Hikma Pharmaceuticals PLC. (Burke, Heather) (Filed on 3/21/2022) (Entered: 03/21/2022)
[-] Read LessDocket(#9) ANSWER to Complaint by Jazz Pharmaceuticals Ireland Limited, Jazz Pharmaceuticals Public Limited Company, Jazz Pharmaceuticals, Inc.. (Faucette, Jeffrey) (Filed on 3/18/2022) (Entered: 03/18/2022)
[-] Read LessDocket(#8) Defendant Par Pharmaceutical, Inc.'s ANSWER to Complaint with Jury Demand byPAR Pharmaceutical Inc.,. (Williamson, Brett) (Filed on 3/18/2022) (Entered: 03/18/2022)
[-] Read LessDocket(#7) Certificate of Interested Entities by PAR Pharmaceutical Inc., identifying Corporate Parent Endo International plc for PAR Pharmaceutical Inc.,. (Bradshaw, Benjamin) (Filed on 3/18/2022) (Entered: 03/18/2022)
[-] Read LessDocket(#6) NOTICE of Appearance by Stephen Joel McIntyre (McIntyre, Stephen) (Filed on 3/18/2022) (Entered: 03/18/2022)
[-] Read LessDocket(#5) NOTICE of Appearance by Benjamin Gardner Bradshaw (Bradshaw, Benjamin) (Filed on 3/18/2022) (Entered: 03/18/2022)
[-] Read LessDocket(#4) NOTICE of Appearance by Brett Johnston Williamson (Williamson, Brett) (Filed on 3/18/2022) (Entered: 03/18/2022)
[-] Read LessDocket(#3) Initial Case Management Scheduling Order with ADR Deadlines: Case Management Statement due by 5/12/2022. Initial Case Management Conference set for 5/19/2022 10:00 AM in San Francisco, Courtroom 03, 17th Floor. (sfb, COURT STAFF) (Filed on 2/18/2022) (Entered: 02/18/2022)
[-] Read LessDocket(#2) Case assigned to Judge Richard Seeborg. Counsel for plaintiff or the removing party is responsible for serving the Complaint or Notice of Removal, Summons and the assigned judge's standing orders and all other new case documents upon the opposing parties. For information, visit E-Filing A New Civil Case at http://cand.uscourts.gov/ecf/caseopening.Standing orders can be downloaded from the court's web page at www.cand.uscourts.gov/judges. Upon receipt, the summons will be issued and returned electronically. A scheduling order will be sent by Notice of Electronic Filing (NEF) within two business days. (bw, COURT STAFF) (Filed on 2/17/2022) (Entered: 02/18/2022)
[-] Read LessDocket(#1) COMPLAINT against All Defendants ( Filing fee $ 402, receipt number ACANDC-16917188.). Filed byHealth Care Service Corporation, a Mutual Legal Reserve Company. (Attachments: #1 Civil Cover Sheet)(Weiler, Matthew) (Filed on 2/17/2022) (Entered: 02/17/2022)
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