Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Drug & Device News

By ALM Staff | Law Journal Newsletters |
December 23, 2010

Judge's Personal Qualms No Reason to Deny Attorney Fees

A New Jersey judge's denial of a pharmaceuticals company's request for attorney fees was recently reversed by the state's appellate division due to the judge's failure to state a valid reason for denial. Novartis Pharmaceuticals Corp. had asked for attorney fees of $500,000 from the defeated whistleblower claimant. Normally, attorney fees might be warranted if a plaintiff acted in bad faith. Stating that he was “not a fan of fee shifting,” Morris County Superior Court Judge W. Hunt Dumont denied the request. On appeal, the panel in DiMaggio v. Novartis Pharmaceuticals Corp., A-4810-07, found that this explanation was not reason enough to support the denial. In reversing, the appellate panel stated, “We are constrained to reverse and remand because the trial court either failed to consider or simply failed to state its findings with regard to defendant's claim that plaintiff's lawsuit was commenced and continued in bad faith.”

Lawyer Indicted for Making False Statements to Shield Drug Company

According to a Nov. 9, 2010, U.S. Justice Department (DOJ) release, an attorney for a large but unnamed pharmaceuticals company has been charged with obstruction and making false statements in connection with an FDA investigation into the company's promotion of off-label uses of one of its products. Lauren Stevens, of Durham, NC, is accused of sending a series of denials of the company's wrongdoing to the FDA after that agency asked the manufacturer for information about the promotion of one of its prescription drugs. The indictment alleges Stevens knew at the time of her letter-writing campaign that the company had paid one physician to promote off-label uses in speeches given at 511 promotional events, and had paid another physician to make similar speeches at 488 such events. The indictment also claims Stevens said she would provide the FDA with slide sets used by the physicians at these events but then willfully failed to do so, falsely representing to the agency that the materials the company did turn over to it were “final” and “complete.” The government's evidence in this regard includes a legal memorandum prepared for Stevens listing the “pros” and “cons” of surrendering the slides to the FDA, with one of the “cons” being that the slides would serve as “incriminating evidence about potential off-label promotion of [the drug] that may be used against [the company] in this or in a future investigation.” Noting that individuals, not just corporations, are responsible for complying with the law during government investigations, Tony West, Assistant Attorney General for the Civil Division of the Department of Justice, said, “Criminal charges are appropriate when false statements such as those alleged here are made to the FDA.” Stevens's employer is not charged with any wrongdoing concerning her alleged false statements.

Darvon and Darvocet Are Pulled from U.S. Market

Xanodyne Pharmaceuticals Inc. has voluntarily withdrawn Darvon and Darvocet, its brand-named versions of the prescription pain medication propoxyphene, from the U.S. market, at the “request” of the U.S. Food and Drug Administration. The agency has also asked a generic distributor of proposyphene to follow suit. The FDA asked the drug manufacturers to pull out of the U.S. market because of new concerns that propoxyphene-containing products can cause heart rhythm abnormalities that can be fatal or otherwise harmful. In a release announcing Xanodyne's withdrawal from the market of Darvon and Darvocet, John Jenkins, M.D., director of the Office of New Drugs in the FDA's Center for Drug Evaluation and Research (CDER), stated that the new data the FDA recently obtained on the drug “significantly alter[s] propoxyphene's risk-benefit profile. The drug's effectiveness in reducing pain is no longer enough to outweigh the drug's serious potential heart risks.”

Judge's Personal Qualms No Reason to Deny Attorney Fees

A New Jersey judge's denial of a pharmaceuticals company's request for attorney fees was recently reversed by the state's appellate division due to the judge's failure to state a valid reason for denial. Novartis Pharmaceuticals Corp. had asked for attorney fees of $500,000 from the defeated whistleblower claimant. Normally, attorney fees might be warranted if a plaintiff acted in bad faith. Stating that he was “not a fan of fee shifting,” Morris County Superior Court Judge W. Hunt Dumont denied the request. On appeal, the panel in DiMaggio v. Novartis Pharmaceuticals Corp., A-4810-07, found that this explanation was not reason enough to support the denial. In reversing, the appellate panel stated, “We are constrained to reverse and remand because the trial court either failed to consider or simply failed to state its findings with regard to defendant's claim that plaintiff's lawsuit was commenced and continued in bad faith.”

Lawyer Indicted for Making False Statements to Shield Drug Company

According to a Nov. 9, 2010, U.S. Justice Department (DOJ) release, an attorney for a large but unnamed pharmaceuticals company has been charged with obstruction and making false statements in connection with an FDA investigation into the company's promotion of off-label uses of one of its products. Lauren Stevens, of Durham, NC, is accused of sending a series of denials of the company's wrongdoing to the FDA after that agency asked the manufacturer for information about the promotion of one of its prescription drugs. The indictment alleges Stevens knew at the time of her letter-writing campaign that the company had paid one physician to promote off-label uses in speeches given at 511 promotional events, and had paid another physician to make similar speeches at 488 such events. The indictment also claims Stevens said she would provide the FDA with slide sets used by the physicians at these events but then willfully failed to do so, falsely representing to the agency that the materials the company did turn over to it were “final” and “complete.” The government's evidence in this regard includes a legal memorandum prepared for Stevens listing the “pros” and “cons” of surrendering the slides to the FDA, with one of the “cons” being that the slides would serve as “incriminating evidence about potential off-label promotion of [the drug] that may be used against [the company] in this or in a future investigation.” Noting that individuals, not just corporations, are responsible for complying with the law during government investigations, Tony West, Assistant Attorney General for the Civil Division of the Department of Justice, said, “Criminal charges are appropriate when false statements such as those alleged here are made to the FDA.” Stevens's employer is not charged with any wrongdoing concerning her alleged false statements.

Darvon and Darvocet Are Pulled from U.S. Market

Xanodyne Pharmaceuticals Inc. has voluntarily withdrawn Darvon and Darvocet, its brand-named versions of the prescription pain medication propoxyphene, from the U.S. market, at the “request” of the U.S. Food and Drug Administration. The agency has also asked a generic distributor of proposyphene to follow suit. The FDA asked the drug manufacturers to pull out of the U.S. market because of new concerns that propoxyphene-containing products can cause heart rhythm abnormalities that can be fatal or otherwise harmful. In a release announcing Xanodyne's withdrawal from the market of Darvon and Darvocet, John Jenkins, M.D., director of the Office of New Drugs in the FDA's Center for Drug Evaluation and Research (CDER), stated that the new data the FDA recently obtained on the drug “significantly alter[s] propoxyphene's risk-benefit profile. The drug's effectiveness in reducing pain is no longer enough to outweigh the drug's serious potential heart risks.”

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

'Huguenot LLC v. Megalith Capital Group Fund I, L.P.': A Tutorial On Contract Liability for Real Estate Purchasers Image

In June 2024, the First Department decided Huguenot LLC v. Megalith Capital Group Fund I, L.P., which resolved a question of liability for a group of condominium apartment buyers and in so doing, touched on a wide range of issues about how contracts can obligate purchasers of real property.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Fresh Filings Image

Notable recent court filings in entertainment law.

CoStar Wins Injunction for Breach-of-Contract Damages In CRE Database Access Lawsuit Image

Latham & Watkins helped the largest U.S. commercial real estate research company prevail in a breach-of-contract dispute in District of Columbia federal court.