Brand Name Drug Makers May be Sued for 'Warning Label' Liability Even After Selling Rights to Drug, Calif. High Court Rules

SAN FRANCISCO — Novartis Pharmaceuticals Corp. can be sued under a theory of “warning label” liability for injuries caused by the generic bioequivalent of its brand name asthma drug, even though it had already sold its interest in the brand name drug six years before the injuries occurred, the California Supreme Court has ruled.

On Dec. 21, the state’s highest court held the brand-name manufacturer’s liability for its own negligence does not automatically terminate just because the brand-name manufacturer sold its rights in the brand-name drug to a successor manufacturer.

In September 2007, plaintiffs’ mother was hospitalized due to concerns …