Holding: Public hospitals and community health centers may not bring lawsuits against drug manufacturers alleging that they have been overcharged for the drugs purchased from the manufacturers pursuant to a federal program. (Kagan, J., recused).
Plain English Holding: Under a federal statute, drug companies that participate in Medicaid must agree to provide discounts on certain drugs to various public hospitals and community health centers. The Supreme Court held, however, that the hospitals and community health centers have no right to sue drug manufacturers who violate that obligation.
Judgment: Reversed, 8-0, in an opinion by Justice Ginsburg on March 29, 2011. (Kagan, J., recused).