In a significant win for independent pharmacies, Health Law Alliance has secured the dismissal of a lawsuit filed by Cardinal Health, Inc. (Cardinal), a multinational corporation, against our clients, several independent pharmacies and pharmacy owners located in Texas, New Jersey, and New York. The United States District Court for the Southern District of Ohio granted dismissal of Cardinal’s amended complaint pursuant to Rule 41(a)(2) of the Federal Rules of Civil Procedure.
The dismissal comes after Health Law Alliance filed a comprehensive motion to dismiss, challenging the merits of Cardinal's case. Our motion argued that the Court lacked personal jurisdiction over the defendants, that Cardinal had failed to state a valid claim for relief, and that the defendants were improperly joined together in a single lawsuit.
Cardinal filed its original complaint last December in state court in Ohio, positing baseless allegations of breach of contract, fraudulent inducement, and conspiracy by Defendants, arising out of their Independent Pharmacy Returns Program. After the case was removed to federal court, Health Law Alliance moved to dismiss the complaint. After numerous stalling attempts to stave off dismissal of its baseless action, Cardinal finally voluntarily consented to dismissal of its complaint by the Court.
This lawsuit represents a classic example of a large corporation attempting to leverage its size and resources to intimidate and extract profits from smaller, independent pharmacies. Cardinal Health, headquartered in Dublin, Ohio, engaged in blatant forum shopping, filing the lawsuit in its home state in an attempt to gain an unfair advantage. This calculated move was designed to inconvenience and financially strain the defendants, who are located hundreds of miles away, in the hopes of forcing a quick settlement and boosting their shareholder value. Cardinal’s complaint attempted to lump together a disparate group of defendants in a baseless legal action. Our attorneys meticulously dismantled Cardinal Health's arguments, exposing the complaint's deficiencies and the plaintiff's transparent attempt to manipulate the legal system.
The voluntary dismissal by Cardinal Health after our motion to dismiss was filed speaks volumes. It is a tacit admission of the weakness of their case and a victory for every independent pharmacy that has been targeted by the predatory tactics of pharmaceutical wholesalers.
This outcome is not just a win for our clients; it is a testament to the principle that justice is not determined by the size of a litigant's bank account. Health Law Alliance remains steadfast in its commitment to defending the rights of healthcare providers and suppliers against the overreach of powerful corporations and government agencies. We are proud to have delivered this result for our clients, and will continue to fight to ensure a level playing field for businesses in the healthcare industry.
MORE ARTICLES BY CATEGORY
DOJ’s 2025 National Health Care Fraud Takedown: What it Means for Telehealth Providers
The DOJ’s 2025 National Health Care Fraud Takedown charged 324 people in schemes totaling $14 billion in intended losses, including $1.17 billion tied to telemedicine and genetic‑testing fraud that implicated 49 defendants - signaling the government’s continued crack‑down on virtual‑care abuses. The surge in criminal and civil actions, coupled with CMS suspensions and the new DOJ‑HHS False Claims Act Working Group, warns telehealth providers to rigorously audit their compliance practices or risk severe penalties and exclusion from federal programs.
Read More >>Telehealth Audit Season: OIG Found 7 Percent Error Rate in Pandemic-Era E/M Billing
A 2024 OIG study found that 7% of E/M services billed during the pandemic were noncompliant with Medicare billing requirements. We break down OIG’s findings and explain what they mean in an era where RPM audits are on the rise.
Read More >>Health Law Alliance Earns Reinstatement for DME Supplier Whose Medicare Billing Privileges Were Unjustly Revoked
Due to Health Law Alliance’s advocacy, a prominent DME vendor in Texas had their billing privileges reinstated this week, without having to jump through the arduous, costly hoops of a fair hearing in front of an Administrative Law Judge or a Departmental Appeals Board review.
Read More >>Balancing Patient Access and Privacy in Audio-Only Telehealth
Address the specific compliance and privacy challenges associated with audio-only telehealth services. This article will provide telehealth providers with actionable strategies to ensure compliance with privacy regulations, such as HIPAA, while effectively using audio-only visits to increase access to care.
Read More >>