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In re Brand Name Prescription Drugs Antitrust Litigation

288 F.3d 1028 (2002)

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In re Brand Name Prescription Drugs Antitrust Litigation

United States Court of Appeals for the Seventh Circuit
288 F.3d 1028 (2002)

MP

Facts

Retail sellers of prescription drugs (retail pharmacies) (plaintiffs) alleged that brand-name prescription drug manufacturers and wholesalers (defendants) violated the Sherman Act, a federal antitrust law, by conspiring in a discriminatory pricing scheme to charge hospitals and retail pharmacies different prices. The retail pharmacies alleged that the manufacturers agreed not to give the retail pharmacies discounts by enlisting wholesalers to police the agreement by means of a chargeback system that the retail pharmacies alleged resulted in denying them discounts they would have received but for the conspiracy. The district court granted the wholesalers’ motion to dismiss, and the retail pharmacies appealed. The manufacturers were not part of the appeal.

Rule of Law

Issue

Holding and Reasoning (Posner, J.)

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