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US judge dismisses most of consumer lawsuit over veterinary service prices

US judge dismisses most of consumer lawsuit over veterinary service prices

Reuters31-03-2025

March 31 (Reuters) - A U.S. judge has dismissed most of a consumer lawsuit accusing veterinary diagnostic testing products manufacturer Idexx Laboratories (IDXX.O), opens new tab of driving up the cost of animal health services.
In a ruling, opens new tab on Friday, Chief U.S. District Judge Stacey Neumann in Maine said the pet owners in the proposed class action had not shown they have legal standing to pursue many of their state-law claims against Idexx.
The consumer lawsuit alleged Maine-based Idexx had abused its market power through exclusive and long-term contracts with veterinary practices across the country, causing pet owners to be overcharged.
The judge said she will allow the plaintiffs to pursue some claims under Minnesota, North Carolina and Missouri state laws.
Attorneys for the plaintiffs and for Idexx did not immediately respond to requests for comment.
Idexx, which employs more than 10,300 employees, last year recorded about $3.9 billion in revenue across its products and services.
Neumann had dismissed federal antitrust claims in a prior order last year, after finding the plaintiffs were not the direct or indirect purchasers of the 'point-of-care' diagnostic products at issue in the lawsuit.
The lawsuit, representing the interests of thousands of would-be class members, was filed in 2022 by pet owners from 14 states including New York, California, Florida, Massachusetts and Illinois.
The complaint focused on diagnostic testing devices used "to treat family pets and other companion animal patients when fast test results are needed." The tests included those for heartworms, according to the lawsuit.
Pet owners claimed they've paid artificially high prices directly to veterinarians, who have paid inflated prices passed down to them by Idexx.
Idexx had urged Neumann to dismiss all of the consumers' state-based claims after the court rejected the federal allegations in the lawsuit.
Neumann directed Idexx to formally respond to the lawsuit by April 11.
In 2013, Idexx settled, opens new tab U.S. Federal Trade Commission antitrust claims, agreeing then to stop certain exclusive arrangements with three national distributors of "point-of-care" testing products. The company did not admit liability.
The case is Cam Yuen et al v. Idexx Laboratories, U.S. District Court for the District of Maine, No. 2:22-cv-00392-SDN.
For plaintiffs: Joshua Davis and Eric Cramer of Berger Montague; Brent Johnson and Richard Koffman of Cohen Milstein; and Jennie Lee Anderson of Andrus Anderson
For defendant: Glenn Pomerantz, Stuart Senator and Adam Lawton of Munger, Tolles & Olson

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