After six years of litigation, the plaintiffs voluntarily dismissed their case with no recovery of any kind

On September 13, 2024, the plaintiffs in one of the earliest insulin pricing actions involving Novo Nordisk Inc. and two other insulin manufacturers filed a stipulation voluntarily dismissing all of their claims with prejudice and without receiving anything from the defendants. The plaintiffs dismissed the case after reviewing a draft sanctions motion that the defendants had served on them and were prepared to file.

The complaint was filed in early 2018 by MSP, a serial litigant that acquires the rights to pursue claims from Medicare health insurance plans and then prosecutes those claims. After years of litigation, MSP realized that its claims lacked merit and belatedly filed a motion to amend its complaint to change its core theory of the case. The defendants opposed, and the court denied the motion.

The defendants thereafter served a draft sanctions motion on the plaintiffs, consistent with Federal Rule of Civil Procedure 11, arguing that the action had both been brought and maintained in bad faith. The motion argued, among other things, that MSP had failed to conduct the requisite diligence before filing its complaint.

The day before the motion was due to be filed, MSP agreed to voluntarily dismiss the action with prejudice and with no monetary payment or other form of relief.

The Davis Polk litigation team included partners James P. Rouhandeh and Neal Potischman, counsel Andrew Yaphe, David B. Toscano and Vincent T. Chang and associates Ian Hogg, Chui-Lai Cheung, Elaine M. Andersen, Andrei Gribakov Jaffe and Jennifer Kim. Members of the Davis Polk team are based in the New York and Northern California offices. 

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