No matter what sector or industry you work in, we would be wrong in saying that our interests do not spike when we hear about a competitor going through some sort of legal battle. We want to find out the details that lead to that point and eagerly track the comings and goings of the case. Not to mention patiently waiting for the day that the outcome arrives as well.
While this is a natural thing to do, there is also another reason why you should be keeping up with lawsuit outcomes, which could be beneficial for your business. No matter the industry, lawsuit outcomes can impact the market itself and how it works and change the horizon for all companies within this sector moving forward. Due to this, you should take an avid interest in what happens in lawsuits, including the ones that we will discuss a bit more shortly.
Lawsuits can be both long or short, and the reason why they have happened can also vary. Healthcare business lawsuits naturally pique the interests of people more than the ones we hear about more frequently. That being the case, they also have some of the most interesting outcomes, whether you are in the sector or not.
With that in mind, we are going to run through some of the lawsuit outcomes that healthcare businesses should read in 2021.
For those who are unaware of who Surescripts is, they are a health information network where users can order medical prescriptions through their servers. Following an investigation into practices by the Federal Trade Commission (FTC), it was stated that Surescripts had implemented strategies within their methods to prevent other e-prescription services from getting any customers who were already using Surescripts services.
The investigations conducted by the FTC showed that the company had issued threats and anti-competitive exclusivity agreements to prevent customers from using other e-prescription services that are available and taking up a large share of the market for themselves.
The FTC concluded that Surescripts used illegal methods in order to monopolize the e-prescription markets entirely, and have outlined that moving forward, they are going to work to prevent the business from using anti-competitor methods in the future, restore equal competition within the e-prescription markets, and return funds to customers who have missed out on going somewhere cheaper.
Other businesses should make a conscious effort to not partake in methods such as these, and recognize that the markets are big enough for everyone.
Sanofi and Boehringer Ingelheim, 2019 – Ongoing
If you are up to date with the goings-on the healthcare business industry, then you have probably heard this mentioned at some point in recent months. With the world news dominated by Coronavirus as of late, we can understand how this topic may have missed the evening news but is a lawsuit that both has outcomes, and that is also ongoing.
Ranitidine, also known by brand name Zantac, was pulled from shelves across the country in September 2019, following investigations by the U.S. Food and Drug Administration (FDA). Research conducted had found that a central component of the medication was unstable the longer it stayed on shelves in stores. With higher dosages being ingested, a person’s chances of developing various cancers increased exponentially.
As a result of these findings and following the withdrawal of the drug from supermarkets up and down the country, the FDA launched an investigation into the drug manufacturers: Sanofi and Boehringer Ingelheim.
Law firms across the U.S. have been working tirelessly on class-action lawsuits against the manufacturers (albeit virtually) throughout the pandemic, for in-person investigations have been postponed. Approximately 250 million dollars have been acquired for clients by Rosenfeld Injury Lawyers and many others, who have been working heavily on cases involving the NDMA contamination in Zantac.
This lawsuit is worth monitoring, for it could well change how medications are stored and manufactured in the future; the NDMA within the antacid medications gradually gets stronger the longer it is sat around, leading to potentially lethal doses being ingested. While the current compensation stands at an eye-watering $250 million, the FDA has estimated that it could even exceed $1 billion.
Johnson and Johnson, 2019
One of the big giants of the healthcare business world, but that does not stop them from being on the receiving end of a lawsuit. Mainly if you keep up with the news coming out of this sector, much like our other examples, you might have an understanding of what happened. However, for those that do not, we will talk you through it and why it is crucial to other healthcare businesses to take on board the outcome that was reached.
Johnson and Johnson (J&J) created what is known as a pelvic mesh device that is used to treat and repair the damaged or weakened tissue within a woman’s bladder or pelvic area. These types of devices contribute towards the strengthening of the tissue wall while minimizing the chances of stress incontinence as well.
While that is the case, an investigation into the devices and J&J by Washington State District Attorney found that J&J knew of the side effects that women could get if they had been in recipience of a pelvic mesh device, but had not disclosed them to the patients. Women who have sued the company have experienced a range of symptoms, ranging from abdominal pain to more life-altering conditions.
One thing that any business can take from this lawsuit, whether manufacturing healthcare-based products or not, is that you should be transparent with customers and clients about any potential side effects that could occur. By making recipients aware of what could happen, you protect yourself from a situation like this and any potentially costly lawsuits.
We hope you have found these examples insightful and interesting and that we have documented a wide variety of lawsuits that healthcare businesses have faced in recent years. Detailing what could happen if you go about processes wrong is an excellent way of deterring companies from landing themselves in hot water and always keeping the customer/patients in mind when creating or selling a product/service.