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Most of the claims against Express Scripts-Medco merger dismissed

Judge is giving plaintiffs a chance to amend some claims and re-plead

Big business is really clearing out lately. On Friday, tobacco companies got their victory when the Federal Circuit ruled against the FDA’s requirement of graphic cigarette labels, and on Monday, health care services giant Express Scripts Inc. won dismissal of most of the claims questioning its acquisition of Medco Health Solutions Inc.

The lawsuit, lobbed by the National Association of Chain Drug Stores, the National Community Pharmacists Association and several independent pharmacies in March, claimed that the Express Scripts-Medco merger would harm consumers by reducing competition and lowering the amount of services available.

The retail drug stores made a misstep, though: They sought only injunctive relief. U.S. District Judge Cathy Bissoon threw out their claims, saying injuries from a loss of competition would be better repaired with cash.

“Plaintiffs provide no indication that they are competitors in this market other than that unspecified members of the ‘Associations’ tried and failed to enter the market in the recent past,” Bissoon said.

The plaintiffs have a chance to amend their claims though, and they have until Sept. 10 to re-plead them.

Read more at Reuters and Bloomberg Businessweek.


For more InsideCounsel coverage of the Express Scripts-Medco merger, see below:

Express Scripts, Medco sued over merger

States, pharmacists scrutinize Express Scripts-Medco merger

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