County Can Sue Drugmakers Over Pricing: 9th Circ.

Law360 (August 28, 2008, 12:00 AM EDT) -- A federal appeals court has reversed a lower court's dismissal of a suit brought by Santa Clara County, Calif., against pharmaceutical companies that allegedly charged federally funded medical clinics higher prices for drugs than allowed under contracts with the federal government.

On Wednesday, the U.S. Court of Appeals for the 9th Circuit reversed the dismissal. Even though the county is not a party to the drug pricing contracts, it is an intended third-party beneficiary and is therefore entitled to sue to enforce the contracts, the appeals...
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