A Chicago federal judge will permit attorneys for the city of Rockford to question the heads of two pharmaceutical-related companies, in a putative class action alleging the companies conspired to fix prices for a hormone drug.
Magistrate Judge Lisa Jensen, of U.S. District Court for the Northern District of Illinois, issued the ruling April 6, saying the company bigwigs may have unique knowledge related to the allegations.
The city of Rockford filed suit in 2017 against Mallinckrodt ARD, a drugmaker headquartered in Great Britain, and Express Scripts Inc., a pharmacy benefit management company based in suburban St. Louis. The suit alleged Mallinckrodt and Express partnered, beginning in 2007 and at least through the time the suit was lodged, to have Express Scripts serve as the sole distributor of the pharmaceutical Acthar, to raise prices, restrict distribution and stifle competition. The alleged actions of the companies allegedly violated antitrust and consumer protection laws, as well as the U.S. Racketeer Influenced and Corrupt Organizations (RICO) Act, the plaintiffs alleged. Acthar was previously made by Questcor Pharmaceuticals, which was bought by Mallinckrodt in 2014.
Rockford, which runs its own health care plan for city employees, wants to lead a class action on behalf of every individual and organization that bought Acthar since 2007. Acthar is a hormone gel used to treat such conditions as multiple sclerosis and infantile spasms.
Attorneys retained by the city wanted to take depositions of Mallinckrodt's President and CEO Mark Trudeau, as well as former Express Scripts CEO and Board Chairman George Paz and Express Scripts Holding Company President Tim Wentworth, who is a former president and CEO of Express Scripts.
The defendants tried to block the depositions, arguing Trudeau has no knowledge pertinent to the suit, because the events in question occurred several years prior to Mallinckrodt’s acquisition of Questcor, a company for which Trudeau never worked.
However, Judge Jensen found Trudeau could have relevant knowledge and there was no grounds to bar his deposition.
"Mallinckrodt has provided the Court with no basis to conclude that Plaintiffs are seeking Mr. Trudeau’s deposition solely for harassment or abuse," Jensen said.
Mallinckrodt contended Rockford was trying to harass Trudeau, because, as Judge Jensen put it, "Mr. Trudeau is the highest-ranking executive of a multinational corporation, with costs clearly associated with having to sit for a deposition."
Jensen determined a deposition would not place undue strain on Wentworth.
However, Jensen ordered executives subordinate to Trudeau and Wentworth to undergo depositions before Trudeau and Wentworth give their depositions. Jensen said this arrangement will help "narrow the line of questioning" and "distill and streamline the information" sought by Rockford. Jensen said she made this decision in consideration of defendants' claim the availability of Trudeau and Wentworth is limited by the demands of their high positions.
Paz may also be deposed, but his deposition may take place before any other executives, because Express Scripts did not identify any hardship a deposition could impose on him, according to Jensen.
The next court hearing is scheduled for May 7.
Rockford is represented by the firm of Haviland Hughes, of Ambler, Penn., which also is pursuing similar actions in other jurisdictions. Rockford is also represented by the firm of Meyers & Flowers, of St. Charles, as well as the city's in-house attorneys.
Mallinckrodt is represented by Williams McCarthy LLP, of Rockford, and Arnold & Porter Kaye Scholer, of Washington, D.C.
Express Scripts is represented by Quinn, Emanuel, Urquhart & Sullivan, of Washington, D.C., and Reno & Zahm, of Rockford.