Virus Delays, Few Approvals Dry Up Generic Drug Lawsuits in 2020

Here are the day’s top coronavirus stories from the team at Bloomberg Law:

• LAWSUIT SLOWDOWN: Drug patent lawsuits took a 21% dive from this time last year, a “perfect storm” that traces back to 2016 when the FDA only approved a handful of new drugs. That means fewer generic drugs are expected to hit the shelves based on lawsuits launched in 2020. However, the dip is expected to be temporary because the number of novel drugs winning Food and Drug Administration approval rebounded in 2017 and in subsequent years.
• BANKRUPTCY VALUATION BRAWLS: The outbreak has made it harder than usual to create a believable model of what a company might be worth. Estimates by bankrupt companies and their bondholders or shareholders differ wildly. This matters for junior creditors, because it determines whether they’ll get some recovery on their busted holdings. That’s setting off battles among investors. The brawls are playing out in court cases from hospital operators like Quorum Health Corp. to tobacco companies like Pyxus International Inc., and there are likely more on the way.
• STIMULUS VOTE: Senate leaders will be trying to hold their parties together for a vote Thursday to advance a slimmed-down stimulus bill that Democrats have already rejected, with both sides jockeying for advantage in public perceptions two months before the election. Republican Majority Leader Mitch McConnell billed the vote as an opportunity for outing Democratic leaders for “stonewalling” on assistance that most agree is needed—including supplemental unemployment insurance and expanded aid for small businesses.

Editor’s Top Picks

Businesses May See Payroll Costs Climb Due to Virus Complexities
The government has employed a number of tactics to help struggling businesses and individuals cope with economic fallout. The changes have created a great deal of complexity for accountants and software providers that help businesses manage their payrolls and associated tax obligations, forcing some to raise their fees.

JPMorgan Warning Shows Banks at Risk in Hunt for Pandemic Fraud
The U.S. hunt for con men who allegedly spent pandemic relief on jewelry, strippers and at least two Lamborghinis is turning a spotlight to a less flashy realm: Community banking.

Cook County Jail’s Group Housing Coronavirus Ban Overturned
Cook County Sheriff Thomas J. Dart convinced the Seventh Circuit on Tuesday to overturn a trial judge’s order blocking the Cook County Jail from using group housing after a major outbreak at the facility.

Federal Virus Aid Ignored Business Misconduct, Watchdog Says
Nearly $150 billion in federal funds aimed at Covid-19 economic stimulus went to businesses with a prior history of corporate misconduct such as employment law violations and faulty or fraudulent health-care billing, according to a government watchdog’s report.

Workplace Covid Tests Meet Disability Law Standards, EEOC Says
Employers testing workers for Covid-19 won’t run afoul of federal disability law, as long as they’re following current Centers for Disease Control and Prevention guidance, the EEOC said.

Board of OnDeck Sued Over Alleged Pandemic ‘Fire Sale’ to Enova
OnDeck Capital Inc.'s board was hit with a Delaware lawsuit blasting its plans to let Enova International buy the online lender as part of a $90 million “fire sale” at “a remarkably terrible time.”

INSIGHT: Would Eliminating the Bar Exam Impact Malpractice Claims?
As debate continues over the future of bar exams, the potential impact on future malpractice claims needs to be considered. In this Q&A, Courtney Curtis-Ives, co-chair of the professional liability practice group at Kaufman Dolowich & Voluck LLP, and Kiera Goral, assistant vice president of claims for QBE North America, discuss ramifications of eliminating the bar exam.

Click here for updates on how federal courts are operating during the pandemic.

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Editor’s Note: The Bloomberg Law news team has been closely covering the legal, regulatory, business, and tax implications of the coronavirus pandemic. This daily email highlights the top stories of the day, across practice areas. To unsubscribe, please adjust your Bloomberg Law newsletter settings. For assistance, contact our help desk at 888-560-2529 or help@bloomberglaw.com.