November 9, 2010—The U.S. Supreme Court announced yesterday that it will hear arguments on Jan. 19 in a pivotal 340B lawsuit on whether 340B providers have the right to sue drug manufacturers for alleged overcharges.
The High Court agreed in late September to review a federal appellate court decision recognizing covered entities’ right to sue. The case is Astra v. Santa Clara (Case No. 09-1273).
As previously reported in the Monitor, Associate Justice Elena Kagan has recused herself from consideration of the case, which means that it will decided by only eight of the nine justices. In the event of a tie, the federal circuit court ruling in the providers’ favor will be left standing.
Last month, a federal district judge in San Francisco halted proceedings in the case pending the Supreme Court’s decision, which is expected by early July. The manufacturers and the counties have spent much of the past year sparring over the scope of discovery in the lawsuit. The federal district and appellate courts hearing the case have granted the counties and their 340B providers unprecedented access to the drug firm’s closely guarded internal pricing data.