Delaware Judge Throws Out Teamsters’ AstraZeneca Lawsuit

A Delaware state judge dismissed with prejudice a decade-old lawsuit filed by six New York Teamsters organizations against AstraZeneca alleging consumer fraud over marketing of the heartburn drug Nexium, saying the purchasers had no evidence they’d been harmed.

In the lawsuit, filed in November 2004, the Teamsters claim AZ committed fraud by introducing Nexium once an over-the-counter version of its earlier heartburn blockbuster, Prilosec, became available. The case was stayed until a similar class action lawsuit played out in federal court. That suit ended in 2010 when a federal judge ruled against the plaintiffs.

In reaching her decision, Judge Vivian Medinilla rejected the Teamsters’ argument that the case should be heard in a Delaware court because the deceptive marketing practices emanated from AZ’s Delaware headquarters and members purchased the drugs in 14 states.

She also agreed with the federal court’s ruling that the law of each plaintiff’s residence or place of business controlled the consumer fraud claim should be followed. Because New York is the Teamsters’ principal place of business and that state’s law governs their relationship with members, the consumer fraud claim must be dismissed because it did not meet New York standards, Medinilla said.

Read the decision in Teamsters Local 237 Welfare Fund, et al., v AstraZeneca Pharmaceuticals LP et al., here: www.fdanews.com/07-10-15-nexium.pdf. — John Bechtel