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Update: Government Files Brief Seeking Dismissal of KV’s Lawsuit

By David Stein on July 27, 2012
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To update our previous post on this subject, on July 20, 2012, the government filed its brief opposing KV’s request for injunctive relief and moved to dismiss the case.  In its brief, the government argues that 

  • KV lacks standing to sue because, in June 2012—prior to KV filing suit—the agency posted on its website a statement and a Q&A advising pharmacies FDA may take enforcement action against pharmacies whose compounding of 17P exceeds the scope of traditional pharmacy practice, and this statement supersedes FDA’s March 2011 statement regarding the compounding of 17P (which KV challenged);
  • FDA’s March 2011 statement is not subject to judicial review because decisions not to take enforcement action are committed to agency discretion under long-standing precedent.  Heckler v. Chaney, 470 U.S. 821 (1985);   
  • FDA’s statement expressing intent to exercise enforcement discretion does not violate any of the sections of the FDC Act cited by KV; and 
  • An injunction is not proper because the agency’s testing of samples of compounded 17P and API failed to reveal any major safety concern, thus, an injunction would be inappropriate and contrary to the public interest.

In support of FDA’s position, Alere Women’s and Children’s Health, LLC, and a group of interested physicians also filed an amicus brief on July 24, 2012.

KV’s reply brief is due by July 27, 2012, and the government’s is due by August 3, 2012.  The hearing on the motions remains scheduled for August 7, 2012—which interestingly is three days prior to the date (August 10, 2012) that FDA must file the Administrative Record with the Court.

Photo of David Stein David Stein

David Stein advises clients on credit reporting, financial privacy, financial technology, payments, retail financial services, and fair lending issues. He assists a broad range of financial services firms, consumer reporting agencies, financial technology companies, and their vendors with regulatory, compliance, supervision, enforcement, and…

David Stein advises clients on credit reporting, financial privacy, financial technology, payments, retail financial services, and fair lending issues. He assists a broad range of financial services firms, consumer reporting agencies, financial technology companies, and their vendors with regulatory, compliance, supervision, enforcement, and transactional matters.

Mr. Stein has significant experience advising clients on compliance with the FCRA, GLBA, ECOA, EFTA, E-Sign Act, TILA, TISA, FDCPA, Dodd-Frank Wall Street Reform and Consumer Protection Act, and FTC Act, as well as state financial privacy laws. Mr. Stein is a member of the firm’s fintech and artificial intelligence initiatives and works with clients on issues related to cutting edge technologies, such as blockchain, virtual currencies, big data and data analytics, artificial intelligence, online lending, and payments technology.

Mr. Stein previously served in senior regulatory, policy-making, and management positions at the Consumer Financial Protection Bureau (CFPB) and the Federal Reserve Board (FRB). He played a significant role in developing regulations and policy on credit reporting, financial privacy, retail payments systems, consumer credit, fair lending, overdraft services, debit interchange, unfair or deceptive acts or practices, and mortgage origination and servicing. Mr. Stein draws upon his government experience in representing clients before the CFPB, the FRB, and other regulatory agencies and leverages his insights into the regulatory process to provide clients with practical, actionable advice.

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  • Posted in:
    Health Care and Life Sciences
  • Blog:
    Focus on Regulation
  • Organization:
    Hogan Lovells
  • Article: View Original Source

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