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ARTICLE · 30 MARCH 2011

Supreme Court Decision Alert - March 29, 2011

Mayer Brown
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Astra USA, Inc. v. Santa Clara County, No. 09-1273 (previously discussed in the September 28, 2010 Docket Report).

United StatesLitigation, Mediation & Arbitration
Andrew Tauber
Andrew Tauber
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Originally published March 29, 2011

Keywords: federal contractors, private rights of action, third-party beneficiaries

Today the Supreme Court issued one decision, described below, of interest to the business community.

Astra USA, Inc. v. Santa Clara County, No. 09-1273 (previously discussed in the September 28, 2010 Docket Report).

Section 340B of the Public Health Services Act, 42 U.S.C. § 256b, requires manufacturers of Medicaid-covered outpatient drugs to enter into contracts with the Secretary of Health and Human Services (HHS). These contracts incorporate a statutory price ceiling on drugs sold to certain healthcare providers. But neither the Public Health Service Act nor any other law gives those healthcare providers an express or implied private right of action to enforce the price cap. Today, in Astra USA, Inc. v. County of Santa Clara, No. 09-1273, the Supreme Court held that healthcare providers may not sue to enforce the price cap

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