FDA ‘Equitable Remedy’ Authority in Doubt: Attorneys
FDA’s authority to obtain equitable remedies in injunction suits may be in jeopardy in light of federal court questions in a Federal Trade Commission (FTC) case against Shire. Attorneys Jennifer Thomas and John Fleder (Hyman, Phelps & McNamara) write in their firm’s FDA Law Blog that the Shire case looks at FTC’s statutory authority to bring suit in federal court seeking injunctive and equitable relief where the alleged statutory violations have long since ceased. They say that while it is hard to predict how a case will be decided, questions by judges at an appeals court hearing “suggested the odds are leaning heavily against FTC winning.”
If FTC does lose the Shire case, they say, it will raise questions about other FTC enforcement cases and also about whether FDA has the authority to seek equitable remedies when it pursues injunctive relief in court.
Thomas and Fleder say a provision in the law authorizes courts to “restrain violations” of the Federal Food, Drug, and Cosmetic Act, but is silent on the court awarding equitable relief as part of the injunction. They say the question of FDA’s authority to seek restitution under such a proceeding was hotly debated 15 years ago. In some court decisions, FDA’s authority was upheld, they write, and the agency also has successfully received such equitable relief through consent decrees.
The attorneys say they will continue to monitor the developing case law.