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Home > Professional Resources > Publications > Trial > January 2012 > Update - January 2012
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Drugmaker's conflict-of-interest action can proceed
Steven M. Sellers
Is a contingent-fee arrangement between a state attorney general and private law firms a conflict of interest? In an intriguing decision, a South Carolina court ruled that a declaratory judgment action by AstraZeneca on this issue can proceed because the drugmaker had stated “a valid claim for relief.” South Carolina had sued AstraZeneca for off-label marketing, retaining three law firms as special counsel, and those firms would share part of any damages award. The initial litigation alleges violations of South Carolina’s Unfair Trade Practices Act, for which a per-transaction civil fine may be imposed. AstraZeneca contends that the contingent-fee agreement is illegal because the case is the equivalent of a criminal case in which the prosecutor has a financial interest.
Other News
- States do not waive sovereign immunity in removing claims, First Circuit says
Matthew Malamud - New York high court green-lights private securities actions
Matthew Malamud - California courts scrap pharma billionaire's data-hosting proposal
Steven M. Sellers
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