Thursday, July 30, 2009

"The Blues" Sue Schering-Plough and Merck, Under federal Racketeering and Wire Fraud Statutes. . . . .

While we wait for the FDA's PDAC Asenapine Meeting developments to unfold, tomorrow -- I thought I'd just mention that last week, "The Blues", i.e., Blue Cross Blue Shield of Illinois, Blue Cross Blue Shield of Texas, Blue Cross Blue Shield of New Mexico, and Blue Cross Blue Shield of Oklahoma have collectively, via the parent entity of each of them filed a federal suit against Schering-Plough, Merck and the M-SP joint venture entity, alleging various RICO violations, wire-fraud, common law fraud and deceptive trade practices -- all related to Vytorin/Zetia, and ENHANCE results disclosure delays. The suit seeks treble damages, as is allowed under civil RICO claims.

While it is a near-certainty that this suit will shortly be transferred from the Eastern District of Texas, into Judge Cavanaugh's courtroom, and consolidated with the other 150-plus lawsuits pending, on these matters -- in the New Jersey US District Courthouse, in Newark -- I thought it worth noting. I think this one suit represents the largest group of health care insurance companies yet to file an action against the companies, and the cholesterol joint venture, related to ENHANCE.

The overpayment damages these Blue Cross/Blue Shield entities may be able to establish, in the aggretate, could easily run well-north of a half-billion dollars.

I'll keep you posted on it.

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