Abbott claimed, among other things, that Takeda earned excessive profits from its supply of lansoprazole to TAP Pharmaceutical Products, a company jointly owned by Takeda and Abbott. Abbott sought to recover a portion of Takeda’s profit, claiming that Takeda forced TAP to continue to purchase its requirement of lansoprazole, the main ingredient in ulcer drug Prevacid. Takeda vigorously denies Abbott’s allegations.
Under the shareholders agreement between Takeda and Abbott, any litigation, instituted by Abbott against Takeda “arising from, concerning, or in any way related to” the shareholders agreement must be filed in Japan. Takeda moved to dismiss Abbott’s lawsuit, contending that Abbott must bring its lawsuit against Takeda in the courts of Japan.
The US court held that Abbott’s claims arise directly from the shareholders agreement, and that the agreement required Abbott to file its lawsuit in Japan. The court held that Abbott “must abide by the agreement it negotiated and litigate these claims in Japan. Accordingly, the court dismissed and terminated the litigation.”
In light of the court’s ruling, Takeda was not required to respond to the substance of Abbott’s allegations.