Supreme Court Mulls Medicaid Clinics' Rights To Sue

Law360, New York (January 19, 2011, 7:25 PM EST) -- Drug companies Wednesday urged the U.S. Supreme Court to nix a putative class action alleging they breached a Medicaid pricing agreement designed to give clinics affordable access to drugs, arguing Congress intended to limit enforcement of the agreement to regulators.

If third-party beneficiaries such as respondent Santa Clara County, Calif., and its federally funded health clinics were allowed to sue directly, pharmaceutical companies would face more than 14,000 suits over 35,000 different medications, Arnold & Porter LLP's Lisa S. Blatt argued for the petitioners.

But health...
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