SAN FRANCISCO (AP) - The California Supreme Court has ruled against pharmaceutical giant Novartis in a lawsuit over a generic version of a drug the company once made.
The court said Thursday brand-name drug manufacturers can be held liable for deficiencies in warning labels on generic versions of their drugs. In a 4-3 decision, the justices said that liability could also extend to cases in which the brand-name drugmaker has sold the drug to another company and stopped making it.
The ruling came in a lawsuit against Novartis by the children of a woman who was prescribed a generic drug while pregnant. The children claim the drug caused them to suffer brain injuries, and Novartis failed to warn their mom about those dangers.
Novartis argued it had sold its rights to the drug years earlier.
The company says it's reviewing the opinion.
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