Government Contracting -- 2011



Astra USA, Inc. v. County of Santa Clara   (U.S. Supreme Court)

Private right of action against government contractors

The Supreme Court decided that medical providers may not sue drug manufacturers to enforce a price cap imposed by the Public Health Service Act on Medicaid-covered outpatient drugs. That law requires drug manufacturers to provide discounted prices to specified healthcare providers, but did not expressly provide the providers with a right to sue to enforce the requirement. The Court decided that such a right is not implied in the statute. A different result could have affected whether third-party beneficiaries of other federal contracting statutes may also have the right to sue manufacturers.