Drug Wholesalers Claim Dismissed for Lack of Evidence of Market Power or Conspiracy

Update August 2010: The Second Circuit has affirmed this decision.

In RxUSA Wholesale Inc. v. Alcon Laboratories Inc. et al., Eastern District of New York Judge Denis R. Hurley has dismissed a $2.3 billion antitrust lawsuit accusing 16 pharmaceutical manufacturers and a group of drug distributors of conspiring to keep RxUSA Wholesale Inc., a secondary distributor, out of business.  The suit accused the manufacturers and their authorized distributors of violating the Sherman Act by refusing to deal with RxUSA, which would purchase medications from authorized distributors and resell them.  In dismissing the suit, Judge Hurley found that RxUSA had failed to allege that either the manufacturing defendants or the distributor defendants had monopoly power in the relevant market or show how they had acted in concert with one another. 

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