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The California claims may be more troubling to the software colossus because California does not adhere to the so-called "direct purchaser rule," which says only a consumer who purchased a product directly from a monopolist can seek monetary damages.
The government would still be spending money, but as an underwriter, not a direct purchaser.
"The whole question of Medicare being the direct purchaser was off the table at the beginning of this Congress," said John C. Rother, the chief lobbyist for AARP, the organization representing retired people.
BLOOMBERG NEWS JPMorgan Is Sued in Aluminum Warehousing Case | JPMorgan Chase, along with Goldman Sachs and Glencore Xstrata, were sued by a direct purchaser in Florida and an individual plaintiff over claims the firms drove up prices of aluminum, Bloomberg News reports.
The direct purchaser rule applies in federal law and in most states.
Many private lawsuits against the company have been dismissed on the grounds that under federal antitrust law, only a "direct purchaser" of the product in question can sue for an overcharge.
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Glaxo filed court papers on Friday in Norfolk, Va., seeking preliminary approval to pay $62.5 million to end a lawsuit by wholesalers and other direct purchasers.
"In China, we're targeting direct purchasers, high net worth individuals, and there are quite a few who want to purchase private property".
Some state laws, like federal law, permit recovery in antitrust cases only for "direct purchasers" of a monopolist's product.
Supreme Court precedent says only "direct purchasers" can sue for antitrust damages, and Apple claims that iOS users actually buy apps from developers, not from Apple itself.
Pfizer's distribution restriction limits the sale of the seven products to a select group of wholesalers, distributors, and direct purchasers under the condition that they will not resell these products to correctional institutions for use in lethal injections, the company said.
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