HEALTH & LIFE SCIENCES NEWS
HEALTH & LIFE SCIENCES NEWS
Exploring Critical Business and Legal Issues across the Healthcare and Life Sciences Industries
HEALTH & LIFE SCIENCES NEWS
Exploring Critical Business and Legal Issues across the Healthcare and Life Sciences Industries

This Week in 340B: December 17, 2024 – January 6, 2025

Posted In 340B

Find updates on 340B litigation from December 17, 2024 – January 6, 2025 to help you stay in the know on how 340B cases are developing across the country. Each week we comb through the dockets of more than 50 340B cases to provide you with a quick summary of relevant updates from the prior week in this industry-shaping body of litigation. Get more details on these 340B cases and all other material 340B cases pending in federal and state courts with the 340B Litigation Tracker.

Issues at Stake: HRSA Audit Process, Contract Pharmacy; Other

  • In a Health Resources and Services Administration (HRSA) audit process case, the government filed a brief in opposition to the plaintiff’s motion for preliminary injunction and the plaintiff filed a reply brief in support of the same motion.
  • In four HRSA audit process cases, the plaintiffs filed responses to the defendants’ motions to dismiss and briefs in opposition to Johnson & Johnson Health Care System Inc.’s motions for leave to file as amicus curiae.
  • In an appealed case challenging a proposed state law governing contract pharmacy arrangements, the appellants filed their opening brief.
  • In a breach of contract claim filed by a 340B Covered Entity against several related party Medicare Advantage plans, plaintiffs filed a second amended complaint under seal with jury demand. Additionally, defendants filed an answer and defenses to plaintiffs’ second amended complaint
  • In a case challenging HRSA’s policy prohibiting manufacturer rebate models, defendants filed a consent motion to vacate the answer deadline and set summary judgment briefing schedule.
  • A covered entity filed a breach of contract claim against an insurance company, alleging that it failed to pay the covered entity the proper amounts because it relied on an outpatient prescription reimbursement rate ruled unlawful by the US Supreme Court.
  • A group of drug manufacturers filed a claim against HRSA, alleging that HRSA’s decision to certify a group of entities as 340B-eligible was arbitrary, capricious, and not in accordance with law.
  • In seven cases challenging a proposed state law governing contract pharmacy arrangements in West Virginia, Missouri, and Mississippi:
    • WV: In three cases, the court issued a memorandum opinion and order granting plaintiffs’ preliminary injunction motions, denying defendants’ motions to dismiss, and ordering defendants to file answers to plaintiffs’ complaints. In three of the cases, the court granted the parties’ joint motion for extension of time for plaintiff to respond to defendants’ motions to consolidate. In another one of the cases, plaintiffs filed a memorandum in opposition to defendants’ motion to consolidate and stay deadlines pending the court’s ruling on motions for preliminary injunction. In one of the cases, defendants filed an answer to plaintiff’s complaint.
    • MS: The court denied the plaintiff’s motion for preliminary injunction.
    • MO: The court denied defendant’s motion for transfer in two cases. In one case, plaintiff filed reply suggestions in support of the motion for preliminary injunction. In another case, plaintiff filed suggestions in opposition to a motion to dismiss for failure to state a claim.
Emily Jane Cook
Emily Cook is a practice area leader for McDermott's Healthcare Regulatory & Compliance practice. She is a national authority on the 340B drug pricing program, and also helps clients navigate the full suite of federal and state regulations that are essential to healthcare operations. Learn more about Emily's practice here.


Reuben Bank
Reuben Bank provides regulatory and transactional counseling on all aspects of state and federal healthcare laws impacting hospitals and healthcare systems. Click here to learn more about Reuben's practice: https://www.mwe.com/people/reuben-bank/


Margaret Houtz
Margaret (Maggie) Houtz is a member of the Healthcare Practice Group, where she works on a range of transactional and regulatory matters affecting the healthcare industry.Learn more about Maggie's practice here.


Patrick Moore
Patrick Moore is an associate in McDermott's Healthcare Practice Group. While earning his law degree, Patrick served as a legal intern for a global life sciences research organization and as managing editor of the Journal of International Law and Foreign Affairs at UCLA School of Law.Learn more about Patrick's practice here.


Deepika Raj
Deepika Raj advises a broad range of healthcare industry clients on regulatory, compliance and transactional matters. She offers multifaceted advice on state and federal fraud and abuse statutes, licensure rules, cannabis laws and due diligence matters. Learn more about Deepika's practice here.


Kelsey Reinhardt
Kelsey R. Reinhardt focuses her practice on regulatory and transactional matters affecting a wide range of clients across the healthcare industry. Learn more about Kelsey's practice here.

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