The U.S. Supreme Court ruled that generic-drug companies, unlike their brand-name rivals, can't be sued for failing to warn patients about the risk of dangerous side effects.
The 5-4 ruling bars two women from suing units of Mylan Inc. and Teva Pharmaceutical Industries Ltd. over metoclopramide, a stomach drug they say caused them to contract a severe neurological disorder.
The decision limits the reach of a 2009 Supreme Court ruling that required brand-name drugmakers to defend against failure-to-warn suits filed under state product liability law. Generic drug companies successfully argued that they shouldn't be held to the same standard because federal law requires them to copy the packaging inserts used by brand-name manufacturers.
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