9th Circuit Returns LapBand Case to District Court

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The 9th Circuit Court of Appeals says that a California federal court erred in granting the federal government’s motion to compel production of many attorney-client documents as part of an obstruction of FDA case involving 1-800-Get-Thin, a weight loss call center that marketed the LapBand medical device to medical and surgical facilities. After receiving a complaint that the call center’s advertising did not contain sufficient risk information, the decision says, FDA opened an investigation and sent Warning Letters to the center and several healthcare facilities.

Responses to the agency from attorneys for the parties were found by the government to contain false statements intended to obstruct the FDA investigation. Under the crime-fraud exception to attorney-client privilege, grand jury subpoenas were issued to the lawyers to produce (1) all communications relating to their correspondence to FDA, including documents and notes showing the information received and identifying the sources of information for the statements and representations made; and (2) retainer agreements and billing records identifying the client(s) who retained and paid for their services in communicating with FDA. The appeals court says the attorneys provided some information but did not fully comply with the subpoenas.

In response to a government motion to compel compliance with the subpoena, the district court, without reviewing any documents in camera, determined from independent, non-privileged evidence that the government had established a prima facie case that the lawyers’ services were obtained “in furtherance of and sufficiently related to ongoing” crimes, that is, false statements to and obstruction of FDA. The court then granted the government’s motion to compel production of all items identified in the subpoenas.

The appeals court ruled that while in camera review of documents is not needed to establish a prima facie case, it is needed to determine which specific documents should be produced.

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