Court rejects J&J claim against Red Cross

A federal judge in the US District Court for the Southern District of New York has dismissed an important part of the law suit brought by health care giant Johnson & Johnson against the American Red Cross seeking to restrict the latter's use of its emblem on first aid, health, safety and emergency preparedness products (Marketletter August 13). The judge's ruling dismissed entirely the drugmaker's claim that the Red Cross promised not to engage in the sale of such items.

"I appreciate the court's decision and hope that Johnson & Johnson will reassess their actions and drop the case altogether," said Mark Everson, president of the American Red Cross.

Following a hearing on October 29, Judge Jed Rakoff later ruled that the "promissory estoppel" claim, a very significant portion of the pharmaceutical company's law suit against the Red Cross, was "dismissed with prejudice." The judge's ruling also means that J&J cannot refile arguments on this claim.