Opinion for the Court filed by Circuit Judge ROGERS.
The Food and Drug Administration (“FDA”) posted on its website trade secrets and confidential information contained in a New Drug Application (“NDA”) filed by Jerome Stevens Pharmaceuticals, Inc. (“JSP”) for Unithroid, a levothyroxine sodium (“LS”) drug used to treat thyroid diseases. FDA also extended the NDA approval deadline, allowing JSP’s competitors to continue marketing their unapproved LS drugs for three years after Unithroid had been approved. JSP filed a six-count complaint against FDA, including two counts under the Federal Tort Claims Act (“FTCA”), 28 U.S.C. §§ 2671-2680 (2000), for misappropriation of trade secrets and breach of a confidential relationship, and one count under the Administrative Procedure Act (“APA”), 5 U.S.C. § 706 (2000), for the arbitrary and capricious extension of the NDA deadline. The district court dismissed the complaint for lack of subject matter jurisdiction under Rule 12(b)(1) of the Federal Rules of Civil Procedure, and JSP appeals the dismissal of Counts I, II, and VI. We conclude that the district court properly dismissed the APA claim in Count VI but erred as a matter of law in ruling that the tort claims in Counts I and II were barred by the discretionary function and intentional tort exceptions to the FTCA. Accordingly, we affirm the dismissal of Count VI, reverse the dismissal of Counts I and II, and remand the case to the district court for further proceedings.
I.
The court reviews the district court’s dismissal of the complaint
de novo
and “accept[s] all of the factual allegations in [the] complaint as true.”
Sloan v. U.S. Dep’t of Housing & Urban Dev.,
JSP is a small New York company that manufactures Unithroid, an orally administered LS tablet used to treat thyroid diseases. On August 14, 1997, FDA announced that, although doctors had been prescribing LS tablets to millions of patients since the 1950s, they were considered “new drugs” because “no currently marketed orally administered levothyrox-ine sodium product ha[d] been shown to demonstrate consistent potency and stability.” 62 Fed.Reg. 43,535, 43,538 (Aug. 14, *1251 1997). Accordingly, FDA required LS manufacturers to submit NDAs for FDA approval by August 14, 2000, and allowed the continued marketing of unapproved LS tablets until that date. See id. FDA stated that after the NDA deadline, any unapproved orally administered LS drug would be “subject to regulatory action.” Id.
On October 19, 1999, JSP filed an NDA for Unithroid. Pursuant to FDA requirements, the NDA contained JSP’s “trade secrets and confidential information for the manufacture of safe, stable, and effective LS,” Compl. ¶ 28, including “[t]he order in which Unithroid’s ingredients are added together; the steps that the additions go through in the formation of Unithroid’s tablets; and the processing of the active ingredient, levothyroxine sodium,” id. ¶ 19. On April 26, 2000, FDA extended the August 14, 2000 approval deadline by one year to allow manufacturers additional time to conduct studies and to prepare applications. 65 Fed.Reg. 24,488, 24,489 (Apr. 26, 2000).
On August 21, 2000, FDA approved Uni-throid, making it the first orally administered LS drug to be approved under the new requirements. The next day, without JSP’s knowledge or consent, FDA posted on its website JSP’s trade secrets and confidential information for manufacturing Unithroid. On December 18, 2000, upon discovering FDA’s disclosure of its trade secrets, JSP demanded that the information be removed immediately from FDA’s website. After repeated requests, FDA removed some of the information on January 12, 2001, and the remaining information on January 28, 2001. Consequently, JSP’s trade secrets were available to the public on FDA’s website for five months.
Meanwhile, following FDA approval and anticipating increased demand for Uni-throid, JSP doubled its staff and invested $2 million in expanding its facilities. On November 17, 2000, JSP filed a petition asking FDA not to extend the NDA deadline a second time, asserting that it was prepared to supply the entire market for LS drugs. Nonetheless, on July 18, 2001, FDA announced that because “it will take time for the millions of patients taking unapproved [LS] products to switch to approved products, and for manufacturers of approved products to scale up their production and to introduce this increased production into the distribution chain,” manufacturers with NDAs pending by August 14, 2001, could continue marketing their unapproved LS tablets for an additional two years. 66 Fed.Reg. 36,794, 36,-794 (July 13, 2001). Following this announcement, Abbott Laboratories “flooded the retail market” with Synthroid, its unapproved LS tablet. Compl. ¶ 47. “Having lost de facto market exclusivity due to FDA’s publication of its secrets and FDA’s extensions of compliance deadlines,” JSP was forced to lay off half its workforce and to destroy excess Unithroid worth up to $30 million. Id. ¶ 48.
On October 2, 2002, JSP filed a six-count complaint against FDA in the district court. Counts I and II alleged that, by disclosing JSP’s trade secrets and confidential information, FDA misappropriated JSP’s trade secrets and breached its confidential relationship with JSP. Counts III and IV alleged that FDA’s disclosure of JSP’s trade secrets violated procedural and substantive due process. Counts V and VI alleged that FDA’s disclosure of JSP’s trade secrets and its extensions of the NDA deadlines were arbitrary and capricious under the APA. The complaint sought more than $1.3 billion in compensatory damages “for [JSP’s] injuries resulting from [FDA’s] misappropriation of [JSP’s] trade secrets and breach of FDA’s confidential relationship with [JSP],” *1252 Compl. ¶ 118, and declaratory relief for the remaining claims.
FDA filed a motion to dismiss for lack of subject matter jurisdiction under Rule 12(b)(1), which the district court granted.
See Jerome Stevens Pharm., Inc. v. FDA,
II.
The FTCA “grants federal district courts jurisdiction over claims arising from certain torts committed by federal employees in the scope of their employment, and waives the government’s sovereign immunity from such claims.”
Sloan,
To determine whether the discretionary function exception applies, the court must engage in a two-part inquiry.
Gaubert,
JSP’s complaint challenges both FDA’s disclosure of JSP’s trade secrets and FDA’s extensions of the NDA deadlines in favor of JSP’s competitors. The parties appear to agree that the disclosure of trade secrets is not a discretionary function because federal laws prohibit it. See Br. of Appellant at 27 (citing 18 U.S.C. § 1905 (2000); 21 U.S.C. § 331(j) (2000); 5 U.S.C. § 552(b)(4) (2000); 21 C.F.R. § 314.430 (2004)); Br. of Appellee at 18-23. The parties also appear to agree that *1253 the extension of the NDA deadline is a discretionary function because it involves an element of choice and is based on considerations of public health. See Br. of Appellant at 31-32; Br. of Appellee at 17-20; Reply Br. of Appellant at 4-10. Thus, the only issue in dispute is whether JSP’s tort claims are “based upon” the disclosure of trade secrets or the extensions of the NDA deadlines.
In dismissing Counts I and II for lack’ of subject matter jurisdiction, the district court interpreted those counts as alleging injuries arising from FDA’s extensions of the NDA deadlines rather than from FDA’s disclosure of JSP’s trade secrets.
See JSP,
The district court based its interpretation of Counts I and II on the economic loss report that JSP submitted as part of its administrative claim for damages.
See JSP,
A.
At the pleading stage, the issue before the district court was not whether JSP had established sufficient proof of damages caused by FDA’s disclosure of JSP’s trade secrets, but whether JSP had sufficiently pled claims for such damages.
Cf. Scheuer v. Rhodes,
In treating Counts I and II as claims arising from FDA’s extensions of the NDA deadlines, the district court relied on JSP’s statement that it “lost de facto market exclusivity due to FDA’s publication of its secrets
and
FDA’s extension of compliance deadlines.”
JSP,
In construing JSP’s tort claims as arising from FDA’s deadline extensions, the district court cited two
cases
—Sloan
v. U.S. Department of Housing & Urban Development,
Similarly, in
Fisher,
Chilean fruit growers sued FDA under the FTCA for banning the importation of Chilean fruit based on a negligently conducted laboratory test concluding that the fruit contained cyanide.
Here, unlike in Sloan and Fisher, the district court could not conclude properly as a matter of law that none of JSP’s alleged injuries were caused independently and immediately by FDA’s disclosure of JSP’s trade secrets. Whereas the contractor in Sloan did not allege injuries caused by the negligent audit, and the negligent laboratory test in Fisher could not injure the fruit growers unless the Commissioner relied on the test to ban the fruit, JSP did allege injuries caused by the disclosure of its trade secrets, and such disclosure could injure JSP even if FDA had not extended the NDA deadlines. Thus, the district court erred in treating JSP’s tort claims as “based upon” FDA’s deadline extensions.
B.
The district court also recast Counts I and II as claims of interference with contract rights.
See JSP,
While FDA points to portions of the complaint characterizing the disclosure of JSP’s trade secrets as “deliberate,” Br. of Appellee at 25 (citing Compl. ¶ 95), the complaint also alleges that FDA believed the disclosure to be an “accident,” Compl. ¶ 46. But whether the disclosure was intentional or negligent does not determine whether the intentional tort exception applies, for the FTCA expressly states the claims that the exception bars, and it does not include misappropriation of trade secrets or breach of confidentiality.
See
28 U.S.C. § 2680(h). The court’s task is limited to identifying “‘those circumstances which are within the words and reason of the exception’ — no less and no more.”
Kosak v. United States,
The Second Circuit’s decision in
Kramer v. U.S. Department of the Army,
Counts I and II of JSP’s complaint, “stripped to their essentials,” reduce to this FDA induced JSP to disclose its trade secrets in confidence, and then it divulged that information to others in breach of that confidence. Thus, JSP’s complaint sufficiently alleges claims for misappropriation of trade secrets and breach of a confidential relationship. FDA’s only response is that “whether the plaintiffs claims were potentially barred as arising out of ‘interference with contract rights’ ... was neither raised nor addressed in Kramer.” Br. of Appellee at 28. FDA is mistaken, however, because the Second Circuit reversed the district court’s dismissal of the complaint on this very basis. Counts I and II therefore must be reinstated.
III.
Under the APA, a reviewing court must set aside an agency action that is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A). A court may not review an agency action, however, if the “agency action is committed to agency discretion by law.”
Id.
§ 701(a)(2). In
Heckler v. Chaney,
In dismissing Count VI of JSP’s complaint, the district court ruled that FDA’s extensions of the NDA deadlines “qualify as decisions not to prosecute or enforce, and therefore enjoy a presumption of un-reviewability.”
JSP,
JSP does not dispute any of the district court’s legal conclusions. Rather, it contends that the district court focused “too narrowly” on its challenge to FDA’s deadline extensions and ignored its broader challenge to “FDA’s entire course of conduct in the LS drug program going back to the August 1997 Notice.” Br. of Appellant at 37. Count VI of the complaint alleged that FDA “acted arbitrarily, capriciously, and in violation of 21 U.S.C. §§ 355; 393” when it (1) extended its August 14, 2000 approval deadline to August 14, 2001, Compl. ¶ 112; (2) changed its August 14, 2001 approval deadline to a filing deadline and allowed manufacturers with pending NDAs to continue marketing unapproved LS drugs until August 14, 2003, Compl.
*1258
¶ 113; (3) “departed from consistent and longstanding precedent” by allowing manufacturers to continue marketing unapproved LS drugs for three years after Unithroid’s approval, Compl. ¶ 115; and (4) took “inconsistent positions” by finding unapproved LS drugs to be unstable and unsafe and yet permitting unapproved LS drugs to be marketed for three years after Unithroid’s approval, Compl. ¶ 117. These allegations essentially challenge three FDA actions: (1) extension of the August 14, 2000 deadline to August 14, 2001; (2) conversion of the August 14, 2001 approval deadline into a filing deadline; and (3) authorization of manufacturers with pending NDAs to continue marketing unapproved LS drugs until August 14, 2003. Each of these actions is an exercise of FDA’s enforcement discretion, and JSP fails to demonstrate how 21 U.S.C. § 355 and 21 U.S.C. § 393 provide guidelines for the exercise of such discretion. To the extent JSP also contends that the district court should have allowed it to amend its complaint, JSP did not seek to amend its complaint and thus cannot show error by the district court for failing to afford unrequested relief.
See United States ex rel. Totten v. Bombardier Corp.,
Accordingly, we affirm the dismissal of Count VI, reverse the dismissal of Counts I and II of JSP’s complaint, and remand the case to the district court for further proceedings.
