Antitrust Law Daily Wrap Up, ANTITRUST—10th Cir.: Enforcement of Utah’s Contact Lens Consumer Protection Act halted, (May 15, 2015)
Law Firms Mentioned:Cravath, Swaine & Moore | Hatch, James & Dodge | Munger Tolles & Olsen | Parsons Behle & Latimer | Perkins Coie | Ray Quinney & Nebeker | Sidley Austin | Skadden, Arps, Slate, Meagher & Flom | Snell & Wilmer | Stoel Rives
Organizations Mentioned:1 800 Contacts, Inc. | 1-800 Contacts, Inc. | Alcon Laboratories, Inc. | Alcon, Inc. | Bausch & Lomb Inc. | Bausch & Lomb, Inc. | Costco Wholesale Corp. | Costco Wholesale Corp. NEW | Cravath Swaine & Moore, LLP | Hatch James & Dodge, PC | Johnson & Johnson Vision | Johnson & Johnson Vision Care, Inc. | Parsons Behle & Latimer, PLC | Perkins Coie, LLP | Ray Quinney & Nebeker, PC | Sidley Austin, LLP | Skadden Arps | Snell & Wilmer, LLP | Stoel Rives, LLP
By Greg Hammond, J.D.
The Utah Attorney General has been temporarily enjoined from enforcing section 58-16a-905.1 of the Contact Lens Consumer Protection Act, pending the Denver U.S. Court of Appeal’s order on an emergency motion for injunction pending appeal (Johnson & Johnson Vision Care, Inc. v. Reyes, May 13, 2015, Shumaker, E.).
Contact lens manufacturers Alcon Laboratories, Inc., Johnson & Johnson Vision Care, Inc., and Bausch & Lomb filed suit against Sean D. Reyes, the Attorney General of the state of Utah, seeking to enjoin Utah from enforcing its newly enacted Contact Lens Consumer Protection Act (Contact Lens CPA). Utah became the first state in March 2015 to enact legislation attempting to restrict unilateral pricing policies for contact lenses. The Contact Lens CPA prohibits contact lens manufacturers and distributors from taking any action to fix or control the prices a retailer charges or advertises for contact lenses.
The federal district court in Salt Lake City denied the manufacturers’ motion for preliminary injunction on May 11, 2015, finding that the plaintiffs were not likely to succeed on their claims that the Contact Lens CPA is unconstitutional. Johnson & Johnson, Alcon, and Bausch & Lomb appealed to the U.S. Court of Appeals in Denver.
The court of appeals entered a temporary injunction on May 13, prohibiting the Utah Attorney General from enforcing Utah Code section 58-16a-905.1. The temporary injunction was made pending the court’s determination on the manufacturers’ emergency motion for injunction pending appeal. Utah and Intervenor-Appellee 1-800 Contacts, Inc. were ordered to respond to the motion for injunction pending appeal, and Intervenor Costco Wholesale Corp. was invited to respond if it intends to participate in the appeal.
The case numbers are 15-4071, 15-4072, and 15-4073.
Attorneys: Kwaku Akowuah (Sidley Austin) and Kenneth Brent Black (Stoel Rives) for Johnson & Johnson Vision Care, Inc. David N. Greenwald (Cravath, Swaine & Moore) and Amber M. Mettler (Snell & Wilmer) for Alcon Laboratories, Inc. Erik Anthony Christiansen (Parsons Behle & Latimer), Steven Sunshine and Maria A. Raptis (Skadden, Arps, Slate, Meagher & Flom) for Bausch & Lomb Inc. Parker Douglas, Office of the Attorney General for the State of Utah. Brent Hatch (Hatch, James & Dodge) and Gregory M. Sergi (Munger Tolles & Olsen) for 1-800 Contacts, Inc. Shylah R. Alfonso (Perkins Coie) and Mark M. Bettilyon (Ray Quinney & Nebeker) for Costco Wholesale Corp.
Companies: Johnson & Johnson Vision Care, Inc.; Alcon Laboratories, Inc.; Bausch & Lomb Inc.; 1-800 Contacts, Inc.; Costco Wholesale Corp.
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