Genzyme Corp. v. Shire Human Genetic Therapies, Inc.
906 F. Supp. 2d 9
D. Mass.2012Background
- Genzyme sues Shire HGT and Shire pic under the Lanham Act for false advertising about VPRIV versus Cerezyme.
- Shire HGT issued a June 28, 2012 press release alleging VPRIV superiority in Gaucher-related bone disease and disseminated it via PR Newswire and patient organizations.
- Genzyme contends the press release contains false and misleading claims about trial analyses and BMD results and likely influenced purchasing decisions.
- Shire HGT moves to dismiss under Rule 12(b)(6); Shire pic moves to dismiss for lack of personal jurisdiction under Rule 12(b)(2).
- The court denies HGT’s 12(b)(6) motion and grants pic’s 12(b)(2) motion, directing discovery negotiations and scheduling adjustments.
- The opinion discusses whether the press release is commercial speech, adequacy of pleading on deception, and whether personal jurisdiction over Shire pic exists.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the press release is commercial speech under Lanham Act | Genzyme argues dissemination with commercial gloss; secondary dissemination can be commercial speech | HGT argues it is scientific speech protected by First Amendment | Yes, potentially commercial speech; Lanham Act claim survives (12(b)(6) denied) |
| Whether Genzyme adequately pleads deception under the Lanham Act | Genzyme pleads literally false BMD improvements and dissemination to physicians/patients | Defendant contends data may not be literally false and requires fact-intensive inquiry | Sufficiently pled at the pleading stage; Lanham Act claim survives |
| Whether the court has specific personal jurisdiction over Shire pic | Shire pic purposefully availed itself via disseminating press release and Massachusetts activities | Release was created by Shire HGT; no sufficient minimum contacts by Shire pic; no alter ego shown | No specific jurisdiction over Shire pic; 12(b)(2) granted; cannot impute through alter ego without factors |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (plausibility standard for pleadings; not mere conclusory allegations)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (U.S. 2007) (requirement of plausible entitlement to relief; not mere conclusory statements)
- Gagliardi v. Sullivan, 513 F.3d 301 (1st Cir. 2008) (elements of a Lanham Act false advertising claim; pleading standards)
- Cashmere & Camel Hair Mfrs. Inst. v. Saks Fifth Ave., 284 F.3d 302 (1st Cir. 2002) (Lanham Act deception elements; presumption of consumer deception at pleadings stage)
- Pernod Ricard USA v. Bacardi U.S.A., Inc., 653 F.3d 241 (3d Cir. 2011) (false advertising; misrepresentation must be capable of misleading at pleading stage)
- Gordon & Breach Sci. Publ’rs S.A. v. Am. Inst. of Physics, 859 F. Supp. 1521 (S.D.N.Y. 1994) (secondary dissemination of scientific information can be promotional and subject to Lanham Act)
- Bracco Diagnostics, Inc. v. Amersham Health, Inc., 627 F. Supp. 2d 384 (D.N.J. 2009) (secondary dissemination of a study can be commercial speech when targeted to customers)
- Donatelli v. Nat’l Hockey League, 893 F.2d 459 (1st Cir. 1990) (alter-ego and piercing corporate veil considerations for jurisdiction)
- Pleasant St. Univ. v. Baystate Med. Ctr., 960 F.2d 1089 (1st Cir. 1992) (three-part test for establishing specific jurisdiction; purposeful availment)
- United States v. Swiss Am. Bank, Ltd., 274 F.3d 610 (1st Cir. 2001) (contextualizes general vs. specific jurisdiction; factors for due process)
