Kaye Scholer Client AstraZeneca Wins Affirmance from Second Circuit in Commercial Litigation Verus Pharmaceuticals, Inc. v. AstraZeneca AB
On June 24, the U.S. Court of Appeals for the Second Circuit issued a summary order in Verus Pharmaceuticals, Inc. v. AstraZeneca AB affirming the district court’s grant of client AstraZeneca’s motion to dismiss all nine claims against it and its wholly owned subsidiary Tika Läkemedel AB. The plaintiff, Verus Pharmaceuticals, a specialty pharmaceutical company, sought $1.28 billion in damages for fraud and breach of contract against AstraZeneca based on AstraZeneca’s alleged failure to perform under a trio of agreements pursuant to which Verus sold an experimental pediatric asthma treatment to Tika and retained the option to repurchase that treatment if, after a period of development, AstraZeneca decided not to take the drug to market.
Verus alleged that those agreements required AstraZeneca to reach certain developmental milestones before they had to decide whether to repurchase the assets. The Second Circuit disagreed, instead accepting AstraZeneca’s argument that it satisfied its contractual obligations by using “diligent efforts” in discontinuing development after it uncovered safety issues with the treatment in preclinical studies. The Second Circuit issued its written decision less than two days after it heard oral argument.
Aaron Rubinstein (Partner, New York Office) argued the case before the Second Circuit, and Aaron, Phillip A. Geraci (Partner, New York Office), Michael S. Bullerman and Aaron F. Miner (Associates, New York Office) wrote the successful appellate opposition brief and the dismissal briefs before the district court. The Second Circuit’s decision is available at 2011 WL 2516368; the district court’s decision is available at 2010 WL 3238965.
Also of Interest
- Boston Appointed a New York City Bar Vice President May 25, 2016 • Recognitions
- Chicago Team Receives 2016 Award for Excellence in Pro Bono Service May 25, 2016 • Recognitions
- Weigel, Druckenbrodt Published in Deutscher AnwaltSpiegel May 24, 2016 • Articles
- Managing Your MDL for Maximum Impact May 2016 • Reports / Newsletters
- WirtschaftsWoche Interviews Fritz about Visa Waiver Program May 23, 2016 • Media Mentions
- Boston Appointed to NY First Department Judicial Screening Committee May 18, 2016 • Recognitions
- SCOTUS Rules That Lawsuit Alleging Naked Short Selling Can Proceed in State Court May 18, 2016 • Client Alerts
- Haveles Speaks to Law360 on the High Court's Merrill Lynch v. Manning Ruling May 17, 2016 • Media Mentions
- Kaye Scholer Secures Non-Infringement Judgment for Nintendo in Patent Battle... May 11, 2016 • Client Successes