COUNTY OF SANTA CLARA v. ASTRA USA, INC.

No. 06-16471.

540 F.3d 1094 (2008)

COUNTY OF SANTA CLARA, Plaintiff-Appellant, v. ASTRA USA, INC.; AstraZeneca Pharmaceuticals LP; Aventis Pharmaceuticals, Inc.; Bayer Corporation; Bristol-Myers Squibb Company; Pfizer, Inc.; Schering-Plough Corporation TAP Pharmaceutical Products, Inc.; Zenecca Inc.; ZLB Behring LLC; SmithKline Beecham Corporation; SmithKline Beecham Corporation, dba GlaxoSmithKline; Wyeth, Inc.; Wyeth Pharmaceuticals, Inc., Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Filed August 27, 2008.


Attorney(s) appearing for the Case

Patrick J. Coughlin, Sanford Svetcov (argued), Jeffrey W. Lawrence, Jacqueline E. Mottek, Aelish M. Baig and Jennie Lee Anderson, Coughlin Stoia Geller Rudman & Robbins LLP, San Francisco, CA; Ann Miller Ravel, Cheryl A. Stevens and Tamara Lange, Santa Clara County Counsel's Office, San Jose, CA; Steve W. Berman and Douglas C. McDermott, Hagens Berman Sobol Shapiro LLP, Seattle, WA, for plaintiff-appellant County of Santa Clara.

Robert S. Litt (argued), Jeffrey L. Handwerker and Sharon Douglass Mayo, Arnold & Porter LLP, Washington, D.C., for defendants-appellees Astra USA, Inc., AstraZeneca Pharmaceuticals, LP and Zeneca Inc.; Alicia J. Donahue and Sara Romano, Shook, Hardy & Bacon LLP, San Francisco, CA, for defendants-appellees Aventis Pharmaceuticals, Inc. and ZLB Behring LLC; Timothy T. Scott, Geoffrey M. Ezgar and Paul Yanosy, Sidley Austin LLP, San Francisco, CA, for defendant-appellee Bayer Corporation; Paul J. Riehle and Matthew A. Fischer, Sedgwick Detert Moran & Arnold LLP, San Francisco, CA, for defendant-appellee Bristol-Myers Squibb Company; Federick G. Herold, Valerie M. Wagner and Philip Barilovits, Dechert LLP, Palo Alto, CA, for defendant-appellee SmithKline Beecham Corporation; Molly M. Lane and Tera Heinz, Morgan, Lewis & Bockius LLP, San Francisco, CA, for defendant-appellee Pfizer Inc.; Kirke M. Hasson and Colin T. Kemp, Pillsbury Winthrop Shaw Pittman LLP, San Francisco, CA, for defendant-appellee Schering-Plough Corporation; Peter N. Larson, Jones Day, San Francisco, CA, for defendant-appellee TAP Pharmaceutical Products, Inc.; Fletcher Alford, Gordon & Rees, LLP, San Francisco, CA, for defendants-appellees Wyeth, Inc. and Wyeth Pharmaceuticals Inc.

Before: STEPHEN REINHARDT, MELVIN BRUNETTI and RAYMOND C. FISHER, Circuit Judges.


FISHER, Circuit Judge:

Certain federally funded medical clinics — so-called "Section 340B covered entities" — are able to purchase prescription drugs at a discount from drug manufacturers under a standardized agreement between the federal government and the drug companies. During 2003, for example, these covered entities spent $3.4 billion on outpatient prescription drugs. They claim in this lawsuit that they have been overcharged for those drugs in...

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