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In Re: Avandia Marketing, Sales Practices and Products Liability Litigation v. Smithkline Beecham Corporation D/B/A Glaxosmithkline
September 7, 2011
IN RE: AVANDIA MARKETING, SALES PRACTICES AND PRODUCTS LIABILITY LITIGATION
DONALD KNIGHT ON BEHALF OF HIMSELF AND ALL OTHERS SIMILARLY SITUATED
SMITHKLINE BEECHAM CORPORATION D/B/A GLAXOSMITHKLINE
The opinion of the court was delivered by: Rufe, J.
THIS DOCUMENT APPLIES TO: HON. CYNTHIA M. RUFE
MEMORANDUM OPINION AND ORDER
The plaintiff in this case is a former purchaser of the prescription diabetes drug Avandia. Plaintiff does not allege that he has been physically injured as a result of taking Avandia; instead he seeks a refund of any monies he paid for Avandia (including insurance co-pays) on behalf of a class of similarly-situated individuals, although no class has been certified. The defendant, GlaxoSmithKline LLC ("GSK"), has filed a motion to dismiss. The motion will be granted.
Plaintiff alleges that GSK promoted the use of Avandia to lower blood-sugar levels of patients with Type 2 diabetes. Plaintiff also alleges that taking Avandia significantly increases the patient's chances of suffering a heart attack or susceptibility to other health risks, and that GSK concealed the risks of Avandia use while promoting the drug's safety, efficacy, and effectiveness through a fraudulent and deceptive marketing program. *fn1 Although the amended complaint can be fairly read as alleging that Plaintiff purchased Avandia at some point (or at least alleges that Plaintiff would not have purchases Avandia but for GSK's alleged wrongful acts), Plaintiff does not allege that he ever took the drug, for how long he took it, or indeed, any facts other than that Plaintiff is a citizen of the state of Illinois. *fn2
Dismissal of a complaint under Federal Rule of Civil Procedure
12(b)(6) for failure to state a claim upon which relief can be granted
is appropriate where a plaintiff's "plain statement" does not possess
enough substance to show that plaintiff is entitled to relief.
*fn3 In determining whether a motion to dismiss is
appropriate the court must consider those facts alleged in the
complaint, accepting the allegations as true and drawing all logical
inferences in favor of the non-moving party. *fn4
Courts are not bound to accept as true legal conclusions
couched as factual allegations. *fn5
Something more than a mere possibility of a claim must be alleged; the
plaintiff must allege "enough facts to state a claim for relief that
is plausible on its face." *fn6 The complaint
must set forth direct or inferential allegations with regard to all
the material elements necessary to sustain recovery under some viable legal theory.
*fn7 The court has no duty to "conjure up
unpleaded facts that might turn a frivolous action . . . into a
substantial one." *fn8
A. Fraudulent Misrepresentation
The elements of a claim of fraudulent misrepresentation in Illinois are: (1) a false statement of material fact; (2) knowledge or belief of the falsity by the party making it; (3) intention to induce the plaintiff to act; (4) action by the plaintiff in justifiable reliance on the truth of the statement; and (5) damage to the plaintiff resulting from that reliance. *fn9 Plaintiff has failed to allege justifiable reliance, as the complaint does not allege any specific misrepresentations relied upon by the plaintiff or his prescribing physician, which is fatal to the common-law fraud and misrepresentation claim.
B. Illinois Consumer Fraud Act
To state a cause of action under the Illinois Consumer Fraud
Act *fn10 , a private plaintiff must allege
that: (1) a deceptive act or unfair practice occurred, (2) the
defendant intended for plaintiff to rely on the deception, (3) the
deception occurred in the course of conduct involving trade or
commerce, (4) the plaintiff sustained actual damages, and (5) such
proximately caused by the defendant's deception. *fn11
Claims that are based on "a course of fraudulent conduct"
are subject to the heightened pleading standard of Rule 9(b).
*fn12 To comply with that standard, the plaintiff
must allege the "identity of the person who made the
misrepresentation, the time, place and content of the
misrepresentation, and the method by which the misrepresentation was
communicated to the plaintiff." *fn13
Plaintiff has not alleged that any misrepresentations were
communicated to him or to his prescribing physician or that either of
them relied upon the alleged misrepresentations, which means that he
has not alleged either actual damages or, more significantly,
proximate cause. *fn14
Plaintiff also alleges that GSK engaged in unfair, as opposed to fraudulent, conduct in violation of the Illinois statute. To determine whether the practice is unfair, the Court must consider "(1) whether the practice offends public policy; (2) whether it is immoral, unethical, oppressive, or ...
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