Walgreens Wins Round In Dispute With Law Firm In Drug Pricing Suit
On Wednesday, US District Judge Virginia Kendall declined to dismiss Walgreen Co’s claim that a US law firm representing major health insurers in a drug-pricing suit against the pharmacy chain has a conflict of interest due to it previously representing the company.
In her ruling, Judge Kendall said that Walgreens had presented sufficient information to sustain its claim that law firm Crowell & Moring has breached its fiduciary duties to Walgreens based on its former legal work for the company.
Walgreens made the allegation as a counterclaim against the plaintiffs represented by Crowell & Moring in a lawsuit against the pharmacy chain. The insurers, who include Blue Cross and Blue Shield of Minnesota, claim Walgreens submitted inflated claims of drug prices, which the pharmacy chain denies.
In her ruling, Judge Kendall also denied an attempt by Crowell & Moring to “qualify” the law firm to represent the plaintiffs in the case against Walgreens. Crowell & Moring argued that its work for Walgreens more than a decade ago was not “substantially related” to the pending lawsuit.
Crowell & Moring represented the pharmacy chain once following the launch of its “prescription savings club” programme. The company alleges that the plaintiffs’ claims in the drug-pricing lawsuit related to Crowell & Moring’s previous legal services.
According to Walgreens’ lawyers, the plaintiff health plans are “aiding and abetting” the law firm’s alleged conflict of interest.
