Perrigo Wins Appellate Judgment Against Mead Johnson

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April 26, 2011

Perrigo Co.’s private label PBM infant formula scored a second legal victory against Mead Johnson for false advertising.

The U.S. Court of Appeals for the fourth circuit affirmed a lower court decision that Mead Johnson had engaged in false advertising, resulting in an injunction prohibiting Mead Johnson from making similar claims and awarding damages in favor of PBM.

“The court has made it clear that national brand and store brand suppliers are entitled to fairly compete and advertising abuses will not be tolerated,” said Joseph C. Papa, Chairman and CEO of Perrigo, the world’s largest store brand manufacturer of OTC pharmaceutical products and infant formulas. “We also appreciate the court’s recognition that PBM could lawfully compare its products to national brand products.”

In late 2009, a jury awarded Perrigo’s PBM brand $13.5 million in damages against rival Mead Johnson, the maker of Enfamil due to false advertising about PBM’s nutritional profile. PBM's formula is sold at many retail outlets, including Walmart, Sam's Club, Target, Kroger and Walgreens.

The appeals court upheld the lower court's decision and damages awarded, as well as the issuance of an injunction barring Mead Johnson from making similar future claims.

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