Drug Cos. Win Big With Pass-On Defense

Law360, New York (July 29, 2008, 12:00 AM EDT) -- A California appeals court has allowed the world's largest drug companies to assert the "pass-on defense" in a lawsuit brought by a group of pharmacies that alleged the drugmakers conspired to keep lower-priced Canadian drugs off the market.

On Friday, the Court of Appeal for the State of California First Appellate District, Division Two affirmed a state court ruling that allowed the drug companies to assert the pass-on defense, which maintains that the pharmacies are not entitled to damages because they passed on to customers the...
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