(Yes, I am entertaining myself with alliteration as
we slump towards the end of the semester)
U.S. District Judge Saundra Brown Armstrong has refused to
dismiss the class action suit against ASRM (the American Society for
Reproductive Medicine), SART (the Society for Assisted Reproductive Technology),
and all clinics and egg-donor agencies that agreed to follow their pricing
guidelines. (I’ve uploaded the order
here:
Download Order denying mtd) The suit alleges that the caps
the societies have imposed on permissible oocyte compensation are per se
illegal.
As regular Lounge readers may recall, this is a case about
which I’ve blogged quite a bit, and I wrote a law review
article in 2009 arguing that the ASRM-SART Ethical guidelines were simply horizontal
price-fixing of the type long considered per se illegal in other industries. And, as
I noted of the ASRM-SART motion to dismiss shortly after it was first filed
back in July of 2011, “this sounds suspiciously like the standard, and
typically unsuccessful, professional association defense.”
As a refresher, ASRM guidelines state that any payment by a
member clinic to an egg donor in excess of $5,000 requires justification, and
any donor payments above $10,000 "go beyond what is appropriate." The
societies claimed that the pricing guidelines were not a per se violation because
they were motivated by ethical concerns, rather than by a desire to enrich the
societies or their member clinics and agencies.
According to the motion to dismiss, the maximum price rules serve
several salutary functions: (1) they protect the health and safety of egg
donors and infertile patients by reducing their incentive to hide medical
information, (2) they resolve "social welfare concerns" about the
exploitation or undue inducement of egg donors, (3) they protect against the
devaluation of human life, and (4) the price caps provide access to donated
eggs for infertile couples with limited economic means. Regular Loungers are already aware of my
views on these arguments, and those of you new to that debate can catch up by
following the links below. Judge
Armstrong concluded that these issues were debatable and denied the motion to
dismiss, refusing to hold as a matter of law that per se analysis should not
apply to the societies’ pricing guidelines.
Judge Armstrong also addressed one argument under the rule
of reason analysis that I had not noticed in the pleadings: ASRM and SART attempted
to define the relevant market to include numerous other "alternative
income-generating opportunities" that are "close substitutes for egg
donation," including “blood, platelet, or plasma donation or paid clinical
trials by hospitals, universities, companies, or research institutions.” Really??
I’ll anxiously await the evidence on that. The Judge refused to settle this at the
pleading stage as well and denied the motion to dismiss under rule of reason
analysis.
I will provide further updates on the case as I get them and
many thanks to my colleague, Barak Richman, for forwarding the latest news on
this front.
Related Posts:
ASRM
Seeks Dismissal of Egg Donor Suit
Kamakahi v. ASRM et al. — Updates
Politics And Profits in The Egg Business
(When Sunny Samaritans Sue, IV)
When Sunny Samaritans Sue, Part III
When Sunny Samaritans Sue, Continued
When Sunny Samaritans Sue
(Image source)
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