AbbVie Appeals To Supreme Court Over Attorney-Client Privilege In 'Long-Standing' AndroGel Case
AbbVie Inc (NYSE:ABBV) has petitioned the U.S. Supreme Court to protect its corporate records, arguing that a lower court ruling threatens the confidentiality of attorney communications.
The pharmaceutical company is seeking to overturn a decision by the 3rd U.S. Circuit Court of Appeals, stating that filing a sham patent-infringement lawsuit could override attorney-client privilege.
The case stems from allegations in the Philadelphia federal court where drug wholesalers, including Cencora Inc (NYSE:COR) (formerly AmerisourceBergen) and McKesson Corporation (NYSE:MCK), claim they were overcharged for the testosterone replacement drug AndroGel.
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The wholesalers allege that AbbVie filed a baseless patent infringement lawsuit against Perrigo Company plc (NYSE:PRGO) in 2011 to delay the release of a cheaper generic version of AndroGel.
In February, the 3rd U.S. Circuit Court of Appeals ruled that AbbVie must provide the wholesalers with 19 documents containing notes from in-house attorneys and memos from outside legal counsel regarding the Perrigo lawsuit.
The court reasoned that the sham patent case constituted fraudulent activity, thus triggering the crime-fraud exception to attorney-client privilege.
AbbVie contends that this ruling significantly broadens the scope of the crime-fraud exception and conflicts with the interpretation of “fraud” by the Washington, D.C.-based Federal Circuit, which specializes in intellectual property litigation. AbbVie warned that the decision could encourage plaintiffs to file antitrust lawsuits by alleging that related patent litigation was a sham, potentially allowing them to access internal attorney records.
The Supreme Court petition is part of AbbVie’s long-standing legal battle over AndroGel. The product saw annual U.S. net sales exceeded $1 billion before generic versions entered the market in 2015.
A Reuters report added that the wholesalers’ case was initiated in 2019. It followed a Federal Trade Commission lawsuit against AbbVie that has since been resolved.
Price Action: ABBV shares are up 0.45% at $170.68 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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