Second Circuit Court puts another chink into the armor of pharmaceutical companies
While this story may not be a major win for those fed up with drug companies, it is another hit to their near impenetrable armor. A district judge threw out a class action suit against companies that produce insulin and similar products, but the Second District says that the case can move forward. What this does is make sure that these companies can be held accountable for their pricing schemes, which is what is necessary to start stopping them from constantly raising prices in the US, while other nations get steep discounts. It is a small victory, yes, but it allows people the chance to call them out in court if they follow the same steps.
Major drug companies have bought and paid for so many politicians so they do not have laws going after them for steep prices to life saving drugs. The courts are one of the few areas anyone has to take them one, as they do not care about public opinion. In his first term, President Trump worked to make prices lower, as have a few other folks, but this just helps to get them in line with what the people of this nation need to not go bankrupt and stay alive. While many drugs are overused, insulin is one of those drugs that people need. While many think it is just for those who have gotten overweight, there are many that get diabetes that are very much in shape. There have even been high caliber athletes that have been sidelined because of this disease.
The Ruling
Here, via a link off of Vital Law (https://www.vitallaw.com/news/antitrust-2d-cir-drug-price-fixing-case-brought-by-federally-funded-clinics-revived-on-appeal/ald01d8c02e11cf2f49a28f26348e953436c6?refURL=https%3A%2F%2Fwww.google.com%2F#), is what the court found.
The Second Circuit has concluded that a putative class action brought by two federally funded health clinics against a group of drug manufacturers plausibly pleaded a horizontal price fixing conspiracy under Section 1 of the Sherman Act. The appellate court first held that the Supreme Court’s decisions in Astra USA, Inc. v. Santa Clara County, 563 U.S. 110 (2011) (Astra), and Illinois Brick Co. v. Illinois, 431 U.S. 720 (1977) (Illinois Brick), did not bar the clinics from bringing their claims. Next, the second amended complaint proposed by the plaintiffs sufficiently pleaded parallel conduct that contributes to an inference of a horizontal price fixing conspiracy. Finally, the plaintiffs pleaded sufficient plus factors to support their allegation of a conspiracy. Thus, a federal district court’s judgment dismissing the suit and denying leave to amend was vacated and the case remanded for the district court to grant plaintiffs leave to file their second amended complaint (Mosaic Health, Inc. v. Sanofi-Aventis U.S., LLC, No. 24-598 (2d Cir. Aug. 6, 2025)).
This allows people to go after them in this class action that was brought by two low income clinic organizations. One is Mosaic Health in the State of New York and the other is Central Virginia Health Services, both with patients that need the insulin to lead normal lives. Sanofi-Aventis, Eli Lilly, Novo Nordisk, and AstraZeneca all dominate the production and sell of these drugs together. They decided that they were going to limit who got the mandated by law low income discount, which raised their profits and hurt many low income folks. It is not a good thing, especially considering that many get diabetes because of genetics, not because of lifestyle.
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