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Ruling Signals End Of Consumer Fraud Suits Over Ads

Law360 (October 26, 2007, 12:00 AM EDT) -- An appeals court’s sweeping decision that federal law preempts false advertising claims under state law could be the death knell for consumer fraud actions against pharmaceutical companies over their drug advertisements.

The U.S. Court of Appeals for the Third Circuit’s ruling this summer in Pennsylvania Employees Benefit Trust Fund v. Zeneca Inc. marks a major victory for drug manufacturers and is likely to prop up the defense of pharmaceutical companies in a number of cases heading for review by the Third Circuit and the Supreme Court....
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