Drug-pricing suit sent back to skeptical judge

By Justin Anderson | Mar 16, 2011

ST. LOUIS (Legal Newsline) –- A federal appeals court has remanded a lawsuit over generic drug-pricing to a federal judge who once called the allegations made in it "laughable."

U.S. District Judge James Rosenbaum also told Charleston, W.Va., firm Bailey & Glasser that it was "absolutely reprehensible" to ask him to sustain the complaint, which alleged a group of drug stores did not pass on savings on generic drugs to consumers. After the complaint was amended, he remanded the case to a Minnesota state court, and the drug stores appealed to the U.S. Court of Appeals for the Eighth Circuit.

A three-judge panel on the Eighth Circuit ruled Thursday that Rosenbaum's court has jurisdiction over the case and sent it back to him. Rosenbaym had ruled the local controversy provision of the Class Action Fairness Act required the case be moved to state court.

The Eighth Circuit ruled "the local controversy provision operates as an abstention doctrine, which does not divest the district court of subject matter jurisdiction."

Read the full story at Legal Newsline.

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