Second look at Lundbeck

(December 1, 2011) -- An eight-day bench hearing held in Minneapolis, Minn., in December 2009, could have far-reaching legal implications for antitrust law, particularly regarding future pharmaceutical cases. It could set a precedent, making it easier for judges to rule against government agencies on technical grounds of market definition, even when the victims are remarkably vulnerable—in this case, premature babies injured by what was alleged to be price-gouging by a monopolist. Judge Joan Ericksen ruled for the company, Lundbeck Inc., and the FTC appealed. The Eighth Circuit Court of Appeals accepted and endorsed Judge Ericksen’s ruling, although with some reservations, stating they could not question her findings of fact. The FTC is seeking an en banc review by the appeals court....

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