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Humana’s RICO Claims Against MS Drug Manufacturer Barred by ‘Indirect Purchaser’ Rule, Judge Concludes

“Under the ‘indirect purchaser rule,’ first developed by the Supreme Court in the antitrust context, only a direct purchaser of goods has standing to assert a claim for violation of the antitrust laws,” U.S. District Judge F. Dennis Saylor wrote. “Every circuit to have considered the issue has held that the rule also applies to civil RICO actions, and that indirect purchasers therefore do not have standing to assert RICO claims. The First Circuit has not yet addressed the question. While there may be practical and policy reasons to question the application of that rule in the health-insurance context, for the reasons that follow, this Court will follow the majority rule. It will therefore dismiss the civil RICO claims for failure to state a claim on that basis.”

       

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