Deals & Corporate Governance
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July 03, 2024
The State Of The Retail Industry's Healthcare Investments
Amazon and Walgreens separately announced changes to their healthcare offerings, revealing the growing divide between retail companies as they grapple with a complicated business. Law360 Healthcare Authority looks at major retailers' recent healthcare ventures and where they stand now.
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June 03, 2024
Judge Says It's Time For DIP Deal For Steward Healthcare
A Texas bankruptcy judge on Monday gave Steward Health Care permission to offer a commitment fee to induce a lender to provide it with the financing to see the hospital chain through its Chapter 11 case, while saying the company needs that final commitment soon.
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June 03, 2024
Taxes Take Center Stage In Pot Industry Amid Fed. Policy Shift
The federal government's move to loosen restrictions on cannabis is expected to trigger a wave of mergers and acquisitions structured as asset deals in the industry, especially among struggling retail operations willing to restructure in order to raise profits and lower their tax liabilities.
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June 03, 2024
Ropes & Gray Guides Becton On $4.2B Edwards Unit Buy
Ropes & Gray LLP is guiding Becton Dickinson and Co. on a deal that will see the medical technology company pay $4.2 billion for Edwards Lifesciences' critical care product group, which focuses on patient monitoring using artificial intelligence, the companies said Monday.
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May 31, 2024
Caremark Cut Loose From CVS Price-Gouging Case
A Rhode Island federal judge on Thursday dismissed Caremark from long-running litigation alleging CVS schemed with pharmacy benefit managers to overcharge insured health plans for generic drugs, finding Caremark's contracts with the funds have enforceable arbitration clauses.
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May 31, 2024
Healthcare REIT Closes $120M Loan For 8-Property Portfolio
Diversified Healthcare Trust has finalized a deal for a 10-year, interest-only $120 million mortgage loan that's secured by eight of its properties located in seven states, the healthcare-focused real estate investment trust announced.
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May 31, 2024
Gov't Contracts Of The Month: Health, Spacecraft And Bombs
The U.S. Defense Health Agency unveiled contracts worth tens of billions of dollars in May, including a scrutinized $43 billion medical staffing vehicle, and the National Aeronautics and Space Administration added $6 billion to a spacecraft deal. Here, Law360 looks at some of the most noteworthy government contracts over the last month.
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May 30, 2024
Rite Aid Ch. 11 Timeline Extended To Allow More Plan Review
A New Jersey judge on Thursday lengthened the timeline for Rite Aid to seek an exit from its Chapter 11 bankruptcy, pushing the confirmation hearing date out by seven days after insurers and others said the company's schedule would not provide enough time to review its restructuring plan.
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May 30, 2024
Cue Health Spiraled Into Ch. 7 After FDA Nixed COVID Tests
Medical-test maker Cue Health's promise of "lab-quality" COVID-19 tests fell apart after federal regulators rang the alarm that its tests were less reliable than advertised, leading the company to file for Chapter 7 liquidation in Delaware bankruptcy court.
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May 30, 2024
FTC, Novant Ask To Delay In-House Trial On Merger Challenge
The Federal Trade Commission and Novant Health have asked to postpone an upcoming administrative hearing over the nonprofit's proposed purchase of two North Carolina hospitals, a purchase that regulators are concerned will dampen competition in the region, according to a notice filed in federal court.
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May 29, 2024
Fla. Medicare Companies Get Class Cert. In Suit Against USAA
A Florida state court judge granted certification to a class of Medicare-contracted businesses suing USAA Casualty Insurance Co. over allegations the insurer withheld policy information and intentionally passed its obligation to pay automobile injury claims downstream to other companies, according to attorneys representing the group of businesses.
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May 28, 2024
J&J To Pay $1.25B For Global Rights To Eczema Treatment
Johnson & Johnson has agreed to buy the rights to an experimental treatment for eczema from Baker McKenzie-advised Numab Therapeutics for approximately $1.25 billion, the companies announced on Tuesday.
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May 28, 2024
Medical Test Maker To Liquidate After FDA Slams COVID Kits
Medical test maker Cue Health filed for Chapter 7 liquidation in Delaware bankruptcy court Tuesday with more than $50 million in debt, two weeks after federal regulators warned customers to throw out its COVID-19 tests due to a higher risk of false results.
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May 28, 2024
DC Circ. Decision May Lead To Tighter 340B Pharma Contracts
A D.C. Circuit decision last week holding that the federal 340B drug pricing program doesn't bar drugmakers from imposing contractual conditions on contract pharmacies could embolden them to impose tougher restrictions as they try to ease the program's financial burden.
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May 24, 2024
Healthcare REIT Nabs $800M Despite Tenant Turbulence
Medical Properties Trust Inc. announced Friday that the real estate investment trust has secured a £631 million ($804 million) financing from a group of investors led by real estate investment firm Song Capital, in a deal led by Goodwin Procter LLP and Slaughter and May.
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May 22, 2024
Doc Gets 3 Mos. For Alexion Trades Despite 'Meaningful Job'
A doctor was sentenced to three months in prison Wednesday for insider trading on an Alexion Pharmaceuticals acquisition, with a Manhattan federal judge saying the defendant's treatment of critically ill, underserved kidney disease patients does not amount to a "get out of jail free card."
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May 22, 2024
Teva, Bristol-Myers Cite Bystolic Against Cancer Drug Case
Celgene and parent Bristol-Myers Squibb pointed a New Jersey federal judge to the dismissal, recently upheld by the Second Circuit, of an antitrust suit over delayed generic competition to AbbVie's hypertension treatment Bystolic to argue the same logic applies to their bid to duck antitrust claims over cancer therapies.
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May 22, 2024
Covington Reps As Biogen Makes $1.8B Bet On HI-Bio
Biogen Inc. said Wednesday it has agreed to purchase Human Immunology Biosciences, or HI-Bio, a San Francisco-based biotechnology company working on targeted therapies for severe autoimmune diseases, in a deal that could see Biogen pay up to $1.8 billion.
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May 21, 2024
2nd Circ. Partially Backs Win For Nurses' Union Pension Plan
In a 90-page opinion, the Second Circuit on Tuesday mostly upheld a Manhattan federal judge's decision affirming an arbiter's award favoring a nurses' pension plan, agreeing that White Oak Global Advisors LLC must return "Day 1" fees totaling nearly $2 million and pay prejudgment interest said to top $22 million.
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May 21, 2024
Sens. Challenge Pharma Lobbyist Over Patent Abuse
U.S. senators from both sides of the aisle took turns at a Tuesday hearing questioning the pharmaceutical industry's top lobbyist over whether patent abuse plays a role in maintaining the high price of prescription drugs.
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May 21, 2024
Wyden Expands Pharma Tax Investigation With Pfizer Inquiry
Senate Finance Committee Chairman Ron Wyden asked Pfizer to provide details on its tax practices to explain how the drug company has consistently paid tax rates that are significantly lower than the corporate tax rate in a letter released by the committee Tuesday.
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May 21, 2024
Louisiana Joins States Reining In Doc Noncompetes
A long-debated Louisiana bill designed to make it easier for doctors to move jobs while alleviating physician shortages is being welcomed by some of the big healthcare players in the state.
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May 21, 2024
SPAC Investor's Suit Changes Came Too Late, Chancery Rules
A shareholder of a special-purpose acquisition company that merged with a now-defunct medical technology company in 2021 waited too long to amend his year-old proposed class action and must defend the case against a motion to dismiss in June, Delaware's Court of Chancery said Tuesday.
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May 21, 2024
Cano Judge Agrees To OK Ch. 11 Plan Disclosure Statement
A Delaware bankruptcy judge agreed on Tuesday to sign off on Miami-based primary healthcare group Cano Health Inc.'s Chapter 11 disclosure statement for purposes of soliciting creditor votes once the debtor files a revised proposed order that bakes in language that garnered support from unsecured creditors.
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May 21, 2024
CVS Health Taps American Express Atty As Governance Chief
The former chief governance officer at American Express announced on her LinkedIn page that she has joined CVS Health as its new senior vice president, corporate secretary and chief governance officer.
Expert Analysis
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Virginia 'Rocket Docket' Slowdown Is Likely A Blip
After being the fastest or second-fastest federal civil trial court for 14 straight years, the Eastern District of Virginia has slid to 18th place, but the rocket docket’s statistical tumble doesn't mean the district no longer maintains a speedy civil docket, says Robert Tata at Hunton.
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A Look At 2023's Major NLRB Developments Thus Far
Over the last six months, the National Labor Relations Board has broadened its interpretation and enforcement of the National Labor Relations Act, including increasing penalties and efforts to prohibit restrictive covenants and confidentiality agreements, say Eve Klein and Elizabeth Mincer at Duane Morris.
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Preparing For Md. Adult-Use Cannabis: Licensing Provisions
As the launch of Maryland’s adult-use cannabis market quickly approaches, current and prospective businesses will need to understand key provisions and limitations related to license conversion, qualifying partnerships, social equity applications and microlicenses, say Seth Gitner and Jonathan Havens at Saul Ewing.
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FTC's Amgen-Horizon Protest Raises Conglomerate Concerns
The Federal Trade Commission's challenge to Amgen Inc.'s proposed $28 billion acquisition of Horizon Therapeutics is the agency's first move in four decades based on a conglomerate theory of competitive harm, and might pose new antitrust risks for transactions beyond the pharmaceutical sector, say attorneys at WilmerHale.
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5 Management Tips To Keep Law Firm Merger Talks Moving
Many law firm mergers that make solid business sense still fall apart due to the costs and frustrations of inefficient negotiations, but firm managers can increase the chance of success by effectively planning and executing merger discussions, say Lisa Smith and Kristin Stark at Fairfax Associates.
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What 3rd Circ. Niaspan Decision Means For Class Cert.
The Third Circuit's recent denial of class certification in the Niaspan antitrust case underscores its particularly stringent understanding of the implicit ascertainability requirement, which further fuels confusion in the courts, threatens uneven results and increases the risk of forum shopping, says Michael Lazaroff at Rimon Law.
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The Texas Two-Step May Be Losing Steam
The Texas Two-Step is a powerful bankruptcy strategy that has been used in recent high-profile cases, including Johnson & Johnson’s talc unit bankruptcy case, but ongoing debate and legal challenges raise the question of whether this maneuver is losing reliability, say Brendan Best and Justin Allen at Varnum.
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FTC Pharma Merger Digest May Offer Policy Clues
The Federal Trade Commission's and the U.S. Justice Department's recently published summary of the agencies' workshop on proposed changes to pharmaceutical merger analysis reads like a policy roadmap and its timing may forecast the release of new draft merger guidelines, say attorneys at Mintz.
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Rethinking In-Office Attendance For Associate Retention
The hybrid office attendance model doesn't work for all employees, but it does for many — and balancing these two groups is important for associate retention and maintaining a BigLaw firm culture that supports all attorneys, says Summer Eberhard at Major Lindsey.
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Avoiding Antitrust Enforcement In Health Care Joint Ventures
Considering the Federal Trade Commission's recent activity in challenging hospital combinations, health care companies must be mindful of antitrust considerations unique to the industry, and employ strategies to minimize enforcement risks, say attorneys at Holland & Knight.
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Murdaugh Trials Offer Law Firms Fraud Prevention Reminders
As the fraud case against Alex Murdaugh continues to play out, the evidence and narrative presented at his murder trial earlier this year may provide lessons for law firms on implementing robust internal controls that can detect and prevent similar kinds of fraud, say Travis Casner and Helga Zauner at Weaver and Tidwell.
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Check Onboarding Docs To Protect Arbitration Agreements
The California Court of Appeal's recent Alberto v. Cambrian Homecare decision opens a new and unexpected avenue of attack on employment arbitration agreements in California — using other employment-related agreements to render otherwise enforceable arbitration agreements unenforceable, say Morgan Forsey and Ian Michalak at Sheppard Mullin.
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Firm Tips For Helping New Lawyers Succeed Post-Pandemic
Ten steps can help firms significantly enhance the experience of attorneys who started their careers in the coronavirus pandemic era, including facilitating opportunities for cross-firm connection, which can ultimately help build momentum for business development, says Lana Manganiello at Equinox Strategy Partners.