“Third Circuit Holds That Non-Signatory Medical Practices Were Bound by Arbitration Agreements Entered Into by Practices’ Purchasing Agents”

In this article available on Lexology, Christina LaBruno of Gibbons discusses the Third Circuit’s decision in In re Rotavirus Vaccines Antitrust Litigation, holding that medical practices’ antitrust claims against a pharmaceutical company were subject to arbitration by virtue of an agreement signed by its purchasing agents. The Third Circuit rejected the lower court’s view that the medical practices could not be required to arbitrate since they were unaware that the agreement between the purchasing agents and the pharma company provided for arbitration. The takeaway for Attorney LaBruno is that “firms should make it a point to know the terms of their agents’ contracts with third parties because they may unknowingly be bound by them.”