Monday, February 23, 2009

Preemption and The Supremes

THE PLANNED merger of pharmaceutical firms Pfizer Inc. and Wyeth has created a complication in one of the most important business cases before the Supreme Court this term.

The case of Wyeth v. Levine was heard by the justices in November; no decision has yet been rendered.

The case, which involves the obscure but important concept of federal preemption, has potential ramifications not just for Wyeth and the pharmaceutical industry, but for a host of other regulated entities looking to shield themselves from state court lawsuits.

According to his financial disclosure form, Chief Justice John G. Roberts Jr. owns stock in Pfizer.

Now that Pfizer plans to merge with Wyeth, the chief justice's investment will be directly affected by the court's decision.

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