Walgreens wins round in clash with U.S. law firm in drug pricing suit - Reuters
A person rides past a Walgreens truck, owned by the Walgreens Boots Alliance, Inc., in Manhattan, New York City, U.S. REUTERS/Andrew Kelly
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(Reuters) - A Chicago federal judge on Wednesday declined to dismiss Walgreen Co's claim that a law firm representing major health insurers in a drug-pricing lawsuit against the pharmacy retailer has a conflict of interest because it formerly represented the company.
U.S. District Judge Virginia Kendall said in her ruling that Walgreens had presented enough information to keep alive its assertion that Washington, D.C.-based Crowell & Moring has breached its fiduciary duties to Walgreens based on its prior legal work for the company.
The Deerfield, Illinois-based Walgreens made the assertion as a counterclaim against health care plan plaintiffs represented by Crowell in a lawsuit against the pharmacy. The insurers, including Blue Cross and Blue Shield of Minnesota and other entities, accuse Walgreens of submitting inflated claims of drug prices. Walgreens has denied the claims.
Crowell's attorneys at the firms Perkins Coie, and Harris, Wiltshire & Grannis did not immediately return a message on Thursday seeking comment. The firm calls Walgreens' conflict claims "meritless."
An attorney for Walgreens at Ropes & Gray did not comment.
Crowell once represented Walgreens after the launch of its "prescription savings club" program, and the company contends that the plaintiffs' claims in the Chicago drug-pricing lawsuit relate to the law firm's prior legal services.
Walgreens' lawyers contend the plaintiff health plans are "aiding and abetting" Crowell's alleged conflict of interest.
Kendall's ruling also denied a bid from Crowell to "qualify" the law firm to represent the plaintiffs in their case against Walgreens. The firm argued its work for Walgreens more than a decade ago was not "substantially related" to the pending Chicago lawsuit.
The judge said there's no case law recognizing a "motion to qualify."
Such a motion "would flip the legal standard governing disqualification on its head — effectively forcing Walgreens to argue a motion to disqualify that it has not brought and may never bring."
Walgreens has a separate but related lawsuit in Washington, D.C., against Crowell that alleges a breach of ethics duties. The retailer has urged a judge to strip fees Crowell has earned or will earn related to actions against Walgreens.
The case is BCBSM Inc v. Walgreen Co, U.S. District Court for the Northern District of Illinois, No. 1:20-cv-01853.
For Crowell & Moring: T. Markus Funk of Perkins Coie and Thomas Mason of Harris, Wiltshire & Grannis
For Walgreen: Jeff Bushofsky of Ropes & Gray
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source: https://www.reuters.com/legal/litigation/walgreens-wins-round-clash-with-us-law-firm-drug-pricing-suit-2022-02-10/
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