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In re Synthroid Marketing Litigation

Citations: 188 F.R.D. 295; 1999 U.S. Dist. LEXIS 11195; 1999 WL 528479Docket: No. 97 C 6017; MDL No. 1182

Court: District Court, N.D. Illinois; July 19, 1999; Federal District Court

Narrative Opinion Summary

In this case, plaintiffs initiated a master consumer class action against several pharmaceutical companies, alleging violations of federal and state laws, including the Sherman Antitrust Act and RICO. The case centers on claims that the defendants misrepresented the bioequivalence of the drug Synthroid to cheaper alternatives, leading consumers to pay inflated prices. The court granted class certification after assessing the requirements of Federal Rule of Civil Procedure 23(a) and 23(b)(3). The plaintiffs successfully demonstrated numerosity, commonality, typicality, and adequate representation. The class action was deemed superior for adjudicating the shared grievances, despite defendants' objections regarding individual causation and damages issues. The court determined that common questions of law and fact predominated and that proximate cause could be established without individual reliance. The court also noted that choice of law considerations were premature at this stage. Ultimately, the court ordered the certification of the class of consumers who purchased Synthroid from January 1, 1990, onward and required the defendants to provide an unredacted report, underscoring the plaintiffs' allegations of economic harm due to the defendants' alleged misrepresentations.

Legal Issues Addressed

Adequacy of Representation under Rule 23(a)(4)

Application: The class representatives adequately protect the class's interests, sharing claims for economic damages without conflicting interests, and are committed to vigorous litigation.

Reasoning: Under Rule 23(a)(4), the class representatives adequately protect the class's interests, as they share claims for economic damages resulting from the same conduct by the defendants and do not have conflicting interests.

Choice of Law Considerations in Class Certification

Application: The court refrains from making choice of law determinations during class certification, noting insufficient record details on state contacts with the litigation.

Reasoning: The court notes that determining the choice of law at this stage is premature, as many courts typically refrain from making such determinations during class certification.

Class Action Certification under Federal Rule of Civil Procedure 23(a) and 23(b)

Application: The court granted class certification after finding that the plaintiffs met the numerosity, commonality, typicality, and adequacy of representation requirements, as well as the predominance and superiority requirements of Rule 23(b)(3).

Reasoning: The court granted the motion for class certification based on the requirements of Federal Rule of Civil Procedure 23(a) and 23(b).

Commonality Requirement under Rule 23(a)(2)

Application: Common questions of law and fact are present, such as whether the defendants suppressed evidence of bioequivalence and made misleading statements.

Reasoning: The commonality requirement is satisfied by shared legal and factual questions, such as whether the defendants suppressed evidence of bioequivalence and made misleading statements regarding the drug.

Numerosity Requirement under Rule 23(a)(1)

Application: Plaintiffs demonstrated numerosity as millions have purchased Synthroid, thereby making joinder impracticable.

Reasoning: The plaintiffs demonstrated numerosity, as millions have purchased Synthroid, making joinder impracticable.

Predominance and Superiority under Rule 23(b)(3)

Application: Common issues predominate over individualized ones, making a class action the superior method of adjudication despite defendants' arguments concerning causation and damages.

Reasoning: Concerning Rule 23(b)(3), which requires common issues to predominate and class action to be the superior method of adjudication, defendants argue that individualized issues concerning causation and damages overshadow common issues.

Proximate Cause in RICO and Consumer Fraud Claims

Application: Proximate cause can be established by purchases occurring post-fraudulent statements, with individual reliance not required for RICO or ICFA claims.

Reasoning: Proximate cause can be established if purchases occurred post-fraudulent statements, with individual reliance not being a requirement for claims under the Illinois Consumer Fraud Act (ICFA) or RICO based on mail and wire fraud.

Typicality Requirement under Rule 23(a)(3)

Application: Plaintiffs' claims are typical as they arise from the same course of conduct, despite the class representatives having switched from Synthroid to another levothyroxine drug.

Reasoning: Regarding typicality under Rule 23(a)(3), plaintiffs' claims are deemed typical as they arise from the same course of conduct, despite the class representatives having switched from Synthroid to another levothyroxine drug.