Monday, August 18, 2014

Major Victory for Plaintiffs Against Generics Out of Alabama Supreme Court

               On January 11, 2013, the Alabama Supreme Court issued an opinion in Weeks v. Wyeth, a matter pending in the Middle District of Alabama.  Wyeth filed an application for rehearing.  On August 15, 2014, the Supreme Court overruled the rehearing application but substituted a new opinion.  In other words, the January 11, 2013 “outcome” remained unchanged.
            The Middle District posed the following certified question:  “Under Alabama law, may a drug company be held liable for fraud or misrepresentation (by misstatement or omission), based on statements it made in connection with the manufacture or distribution of a brand-name drug, by a plaintiff claiming physical injury from a generic drug manufactured and distributed by a different company?”.  In an opinion written by Justice Bolin, the Supreme Court answered in the affirmative.  This “outcome” is contrary to similar rulings in other jurisdictions.
            Weeks’s treating physician wrote a prescription for Reglan but did not specify that the pharmacist must fill the prescription with “brand-name” Reglan.  As permitted by a state statute and encouraged by medical insurers, Weeks’s pharmacist provided him with a generic version of Reglan, which Weeks ingested.
            Chief Justice Moore, who was not on the Court on January 11, 2013, wrote a dissent in which he advocated that the Court should not have accepted the invitation to answer the posed certify question because there was an insignificantly developed factual record.
            Wyeth’s position appeared to be that Weeks was seeking to prosecute AEMLD claims in a situation where he was injured after taking a drug which was not manufactured by Wyeth.  Justice Bolin wrote that, as to Wyeth, Weeks was not prosecuting any AEMLD claim, predicated on the prescribed drug being defectively.  Instead, Weeks’s theory was that Wyeth’s fraudulent conduct lead to Reglan being prescribed in the manner that it was.
            Justice Bolin noted (a) that, like many states, the Alabama Legislature enacted a law which allowed pharmacists to substitute a generic version of a prescribed “brand name” drug unless the physician mandates that the prescription be filled with the “brand name” manufacturer’s drug and (b) that health insurers and others prefer filling prescriptions with generics and there are economic reasons why a patient may be willing to accept a generic over a brand name.  Justice Bolin also outlined the FDA rules and regulations which prevent generic manufacturers from providing information and warnings different from those approved for dissemination by the brand-name manufacturer.  In other words, the brand-name maker, and not the generic company, controls the information upon which physicians rely in choosing to prescribe the subject drug. 
            The opinion expressly stated that the Court was not ruling on the ultimate merits of the case.  The Court merely found that Weeks could pursue this theory despite having not ingested Wyeth’s product.  [This may explain Chief Justice Moore’s dissent because there were no facts developed as to whether the prescribing physician relied on Wyeth-supplied information in deciding to prescribe Reglan in the manner in which he did.]
            This opinion appears to promote the notion that brand-name drug manufacturers should be held legally accountable if they made misrepresentations or omissions which resulted in physicians “mis-prescribing” a drug.  Brand-name manufacturers know that, when a physician prescribes a drug by its brand name, the prescription may be filled with a generic version and that physicians may rely on the information which can only come from the brand-name manufacturer because the generic manufacturer typically cannot provide any differing information.

Monday, August 11, 2014

Judge Rules For O'Bannon


Last Friday, Judge Wilken ruled in favor of the O'Bannon plaintiffs against the NCAA. Judge Wilken presided over a non-jury trial in June that lasted approximately three weeks. 

In the landmark case, Judge Wilken ruled that football and men's basketball players could be compensated for the use of their names, images, and likenesses for television and other media broadcasts and video games. She ruled that the current NCAA bylaws that prohibit such compensation violates well-established anti-trust law.

The ruling, which will surely be appealed by the NCAA, is the first major victory for college athletes against the NCAA. Several other cases are currently pending against the institution, including the Keller case set for trial early next year.

To read Judge Wilken's ruling, click here.

Wednesday, August 6, 2014

Georgia Debt-Collection Firm Accused of Filing 350,000 Lawsuits

A story broke recently about a Georgia law firm which filed over 350,000 lawsuits over the last four years. The lawsuits were collection efforts against consumers, many of whom may not actually owe debts or owe less than the amounts claimed. The government has filed a complaint against the firm alleging, “…in Georgia alone, the Firm sued about 78,000 consumers in 2009; about 84,000 in 2010; about 71,000 in 2011; about 57,000 in 2012; and about 60,000 in 2013. In sum, the Firm filed more than 350,000 collection suits from 2009 through 2013.” The firm denies the allegations.

It was reported that roughly 40,000 of the 350,000 suits were dismissed when challenged in court. It was also noted that consumers who retained attorneys were almost four times more likely to get their cases dismissed.

The amount of collection lawsuits filed has increased dramatically over the last number of years. A recent survey estimated that 1 in 3 adults with a credit history -- or 77 million people -- are so far behind on some of their debt payments that their account has been put "in collections." Click the link below to read more on that study:

http://money.cnn.com/2014/07/29/pf/debt-collections/index.html?iid=HP_LN&hpt=hp_t2

Identity theft has also been on the rise. We have all heard in the news the major data breaches at Target and Mapco recently. One of the best methods you can take to make sure your identity has not been stolen is to monitor your credit reports monthly through a variety of services offered.

Booth Samuels handles identity theft cases. If you have been the victim of identity theft, call 1-866-515-8880 or email him directly at booths@pittmandutton.com.