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Case Briefing

BY ALM Staff
August 01, 2003

Absent Private Right of Action, Removal to Federal Court Barred

A lawsuit by the State of Minnesota against a pharmaceutical company for violation of various state laws was improperly removed from state to federal court because although resolution of a substantial federal question was required to settle the issues, the federal statute conferred no private right of action for its violation. Montana v. Abbot Labs, Civ. Action Nos. 02-12084-PBS, 02-12085-PBS, 02-12086-PBS, 03-10069-PBS, 2003 U.S. Dist. LEXIS 9890 (6/11/03).

Plaintiff State of Minnesota brought these actions against the pharmaceutical company alleging the company violated state law by fraudulently misrepresenting prescription drug prices. Defendant removed the suit from state court on the ground that plaintiff's claims raised federal questions, because the outcome of the claims turns on the meaning of “average wholesale price” (AWP) in the federal Medicare statute, 42 U.S.C. '1395u(o). Plaintiff argued in support of its bid for remand to state court that any federal issues were not substantial enough to confer jurisdiction and that Pharmacia's statutory argument was simply a defense, which is not a ground for removal.

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