Illinois Federal Court Dismisses Antitrust Suit Brought by Institutional Pharmacy Against Insurer

On January 16, 2009, United States District Judge Rebecca R. Pallmeyer, of the U.S. District Court, Northern District of Illinois, Eastern Division, granted summary judgment in favor of defendants UnitedHealth Group, Inc. and Pacificare Health Systems, Inc. on all claims in the antitrust litigation with institutional pharmacy Omnicare, Inc.  The Memorandum Opinion and Order can be found by clicking here.

In Omnicare’s lawsuit filed on May 18, 2006, Omnicare alleged that defendants UnitedHealth and PacifiCare conspired, prior to their merger, in violation of the antitrust laws to obtain the lowest possible price from Omnicare for prescription drugs in connection with the Medicare Part D program.  The court denied defendants’ motion to dismiss, holding that Omnicare pleaded facts which plausibly suggest that the merger agreement constituted a contract, combination or conspiracy under section 1 of the Sherman Act.  On June 20, 2008, UnitedHealth moved for summary judgment on all claims.  On January 16, 2009, in a 54 page decision, the Court granted summary judgment in favor of defendants.