Repro-Med Systems, Inc. v. Emed Technologies Corporation
2:13-cv-01957
E.D. Cal.Jun 6, 2017Background
- EMED Technologies (defendant moving for injunction) and Repro-Med Systems (RMS, plaintiff) are the two primary U.S. manufacturers of devices for subcutaneous immunoglobulin (SCIg) therapy; RMS’s Freedom 60 pump is dominant in the market.
- FDA inspected RMS facilities in June 2015 and issued a February 26, 2016 warning letter alleging violations concerning the Freedom 60, Freedom Edge pump, and HigH‑Flo needle set (adulteration/misbranding and promotion outside cleared indications).
- EMED alleges RMS made false or misleading public statements (brochures, a March 11, 2016 customer letter, and SEC filings) claiming FDA clearance/no restrictions/no safety concerns, and that RMS’s conduct constitutes unlawful/unfair competition under California’s UCL.
- RMS recalls/corrections arose from defective packaging seals affecting sterility for some HigH‑Flo needle sets; the FDA letter criticized RMS’s corrective‑action verification.
- EMED moved for a preliminary injunction to bar RMS’s sales of the Freedom 60, Freedom Edge, and HigH‑Flo sets in California; RMS opposed, arguing preemption, agency jurisdiction, and that EMED cannot show the Winter factors.
- The court denied EMED’s preliminary‑injunction motion, concluding EMED failed to show likely irreparable harm and that the balance of hardships tips in its favor.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether EMED is likely to succeed on the merits of a UCL claim based on RMS’s alleged false/misleading statements | RMS’s FDA warning letter shows RMS’s statements are false/misleading and unlawful under the UCL | RMS: FDCA preempts, FDA has primary jurisdiction, warning letter not dispositive; statements are not false | Court did not resolve merits because other Winter factors not met |
| Whether EMED will suffer irreparable harm absent injunction | Loss of sales, revenue, and market share from RMS’s continued sales and misleading statements; UCL typically affords injunctive relief only | RMS: EMED offered no evidence of actual lost sales or market share—only speculation | Denied — EMED failed to show likely irreparable harm (speculative evidence insufficient) |
| Whether balance of hardships favors an injunction | Injunction needed to prevent anti‑competitive conduct and protect EMED’s market position | Injunction would bar RMS from selling longstanding products in a major market, likely cause nationwide spillover, and harm RMS’s customer relationships | Denied — hardships do not tip sharply in EMED’s favor; injunction would impose substantial harm on RMS |
| Whether public interest supports preliminary injunction | Public interest favors truthful marketing and safety | Public interest disfavors broad ban that may block legally cleared sales and disrupt patient access | Court did not reach full analysis after finding Winter factors unmet; public interest not enough to overcome failure on irreparable harm and equities |
Key Cases Cited
- Winter v. Natural Resources Defense Council, 555 U.S. 7 (2008) (establishes four‑part preliminary injunction test and requires likelihood of success and irreparable harm)
- Alliance for the Wild Rockies v. Cottrell, 632 F.3d 1127 (9th Cir. 2011) (permits sliding‑scale approach but requires irreparable injury and public‑interest showing)
- Schrier v. University of Colorado, 427 F.3d 1253 (10th Cir. 2005) (heightened scrutiny when movant seeks to alter status quo)
- Univ. of Texas v. Camenisch, 451 U.S. 390 (1981) (purpose of preliminary injunction is to preserve relative positions until trial)
