Massachusetts Court Clouds ‘Innovator Lability’: Attorney
Attorney Victor Schwartz (Shook, Hardy & Bacon) says the Supreme Judicial Court of Massachusetts has clouded the question of innovator drug company liability in cases alleging injury caused by a generic drug company’s version of their product. Writing in a Washington Legal Foundation Legal Opinion Letter, Schwartz says the court fully understood that “black-letter liability law limits a manufacturer’s responsibility for harms caused by a product it made or authorized. Nevertheless, the court permitted an end-run around that standard by allowing a claim based on recklessness.”
He says that in Rafferty v. Merck, the plaintiffs argued that without tort law exposure, branded companies would have little incentive to improve their warnings. “That argument does not hold water,” Schwartz declares. “Existing law provides significant fines and penalties for the failure of branded companies to inform FDA about a pharmaceutical product’s serious adverse side effects, particularly when it acts recklessly. In fact, post-patent, generic companies, not branded companies, are in the best position to protect consumer safety because they control 90% of the market. They are subject to the same fines and penalties. The court did attempt to cabin future litigation against branded drug companies to only the most extreme reckless behavior.”
According to Schwartz, once a reader gets past the court’s sympathetic statements about the risks of developing prescription drugs and its sincere efforts to limit its holding, the case is still another instance of “deep pocket jurisprudence.” The court believed that the plaintiff had been wronged, the attorney writes, and since the generic drug company had an absolute preemption defense, someone had to pay, and that someone was Merck and its deep pockets.