Cases & Deals

Cardinal Health defends against antitrust conspiracy putative class

Clients Cardinal Health, Inc.

Jones Day client Cardinal Health, Inc. successfully obtained dismissal with prejudice of a second amended complaint (“SAC”) in an antitrust conspiracy case. The litigation was first brought by a putative class in 2018. The litigation, which alleged a conspiracy primarily to inflate the prices of Becton Dickinson (“BD”) syringes, safety syringes, and safety catheters (“Products”), was dismissed with prejudice in November 2018, but reversed and remanded by the Seventh Circuit on standing grounds, but with leave to re-plead, in an opinion that also made clear that the complaint did not adequately allege a hub-and-spokes conspiracy involving distributors like Cardinal Health. On remand, plaintiffs abandoned both their hub-and-spokes conspiracy theory and four defendants (two group purchasing organizations and two distributors) and alleged two separate vertical conspiracies, one between BD and Cardinal Health, and one between BD and McKesson. Cardinal Health and McKesson moved for dismissal based on plaintiffs’ lack of standing to sue Cardinal (from which they had not purchased any Products) as well as plaintiffs’ failure to adequately plead conspiracy. The court dismissed the SAC with prejudice on both grounds.

Marion Diagnostic Center v. Becton Dickinson, No. 18-cv-01059 (S.D. Ill.); No. 18-3735 (7th Cir.)