Calif. High Court Nixes 'Pass-On' Defense

Law360, New York (July 12, 2010, 7:42 PM EDT) -- California's highest court has ruled that some of the world's largest drug manufacturers cannot use a so-called pass-on defense to reduce or eliminate any possible liability in litigation alleging that the firms conspired to keep lower-priced Canadian drugs off the U.S. market.

In a decision filed by the Supreme Court of California Monday, the high court found that the pass-on defense is not available under California law to defendants accused of price-fixing.

In antitrust litigation, the pass-on defense involves an attempt by a defendant to show...
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