Matrix Distributors Inc v. National Association of Boards of Pharmacy, No. 20-3638 (3d Cir. 2022)
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Wholesale pharmaceutical distributors sued two private entities, OptumRx and National Association of Boards of Pharmacy, under 42 U.S.C. 1983 for alleged violations of constitutional and federal law. They claim that their due process rights were violated when OptumRx announced that its network pharmacies would purchase only from distributors accredited under the Association’s “Verified Accredited Wholesale Distributor” program. The plaintiffs’ applications for VAWD accreditation were canceled with little explanation and no opportunity to challenge the result. Because the criteria for VAWD accreditation were more stringent than the federal Drug Supply Chain Security Act’s requirements, they alleged violations of the Act and the Supremacy Clause.
The Third Circuit affirmed the dismissal of the claims. Most constitutional amendments protect only against wrongs caused by the states or the federal government; section 1983, the main cause of action for seeking damages for constitutional violations, contains a “state actor” requirement, allowing suit only against those who can be fairly said to be acting for the state itself. There is no "state actor" in this case.
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