Drugmakers Must Face Fraud Claims In Valsartan MDL

Law360 (January 29, 2021, 9:06 PM EST) -- A New Jersey federal judge said Friday he won't toss fraud claims against drug manufacturers, but will toss the claims against wholesalers and pharmacies, in multidistrict litigation alleging they took part in distributing generic drugs containing the active ingredient valsartan that were tainted with carcinogens.

In considering dismissal bids from those defendants in three master complaints, U.S. District Judge Robert B. Kugler upheld claims of fraudulent misrepresentation, fraudulent concealment and other fraud-based claims against manufacturers but tossed without prejudice those against the wholesalers and pharmacies.

The fraud claims are viable against the drugmakers — which include Teva Pharmaceuticals USA Inc. and...

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