Second Circuit Revives Insurance Co.'s Suit Alleging Rezulin Maker's Fraudulent Marketing

NEW YORK - Health benefit providers (HBP) can pursue claims stemming from economic losses incurred by the alleged fraudulent marketing of Rezulin, stated a Second Circuit opinion that overturned a district court's decision to dismiss an insurance company's class action against the drug maker. Caesar Desiano and Gloria Desiano, et al., v. Warner-Lambert Co., No. 01-9318 (2nd Cir.).

The federal appeals panel ruled that U.S. District Judge Lewis A. Kaplan erred in applying federal Racketeer Influenced and Corrupt Organization (RICO) statutes when determining if the HBP could establish that the manufacturer's actions caused the alleged economic injuries.

The appellate court …