UPPI, LLC – FTC Cracks Down on Anti-Competitive Tactics Harming Client
UPPI, LLC is a network of dozens of independent radiopharmacies spread across the U.S. Arnall Golden Gregory has been UPPI’s legal adviser for many years. In 2009, the client raised an antitrust issue with AGG. It said Cardinal Health, a $100 billion-plus health services company, was using anti-competitive practices to block UPPI members out of markets. UPPI sought AGG’s help in solving this problem.
AGG decided the best approach would be to connect UPPI with key members of the Federal Trade Commission to tell their story and present evidence of the unlawful actions they believed Cardinal Health was taking in the marketplace. The FTC interviewed UPPI members and kept in touch with UPPI leadership, eventually launching an investigation of Cardinal’s practices. The investigation concluded that Cardinal illegally monopolized 25 local markets for the sale and distribution of low-energy radiopharmaceuticals and forced hospitals and clinics to pay inflated prices for their products.
After a thorough investigation, the FTC announced it had reached a settlement with Cardinal in which Cardinal agreed to pay $26.8 million — the second largest monetary settlement the FTC has obtained in an antitrust case. The money was deposited into a fund for distribution to customers who had been wronged. The order also included provisions to prevent future unfair tactics by Cardinal.