California’s Proposition 79

As CoyoteBlog (Oct. 18) notes, this ballot initiative on drug prices contains a sneaky, little-discussed provision that will empower trial lawyers to file bounty-hunting suits against pharmaceutical companies if the companies charge prices “that lead to any unjust and unreasonable profit”, with a minimum $100,000 plus fees guaranteed to plaintiffs if a jury agrees that […]

As CoyoteBlog (Oct. 18) notes, this ballot initiative on drug prices contains a sneaky, little-discussed provision that will empower trial lawyers to file bounty-hunting suits against pharmaceutical companies if the companies charge prices “that lead to any unjust and unreasonable profit”, with a minimum $100,000 plus fees guaranteed to plaintiffs if a jury agrees that they have proved this (very hazily defined) offense. California has already earned the title of “Shakedown State” because of its bounty-hunting provisions on chemicals, disabled rights, consumer, education and labor law. And the San Diego Union-Tribune editorially criticizes Consumers Union for backing the benighted measure.

3 Comments

  • More on California Bounty Hunting

    Walter Olson has a post on California Prop 79, whichcontains a sneaky, little-discussed provision that will empower trial lawyers to file bounty-hunting suits against pharmaceutical companies if the companies charge prices that lead to any unjust and u…

  • Next week’s balloting

    Looking forward to next Tuesday’s election: * The American Justice Partnership is blasting Virginia Democratic gubernatorial candidate Tim Kaine, noting that while a practicing trial lawyer he was sanctioned by a court for filing a…

  • California Prop 79

    On National Review Online, Paul Howard of the Manhattan Institute warns against it:The proposition [among other provisions] also makes “profiteering” by companies illegal. Profiteering is defined as “an unconscionable price” or an “unreasonable profit,…