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How One Company Controlled Who Gets to Sell Medicine Online | LegitScript LLC

Antitrust Misconduct

How One Company Controlled Who Gets to Sell Medicine Online

The Non-Financial Ledger

Imagine you are trying to afford your insulin. Or your blood pressure medication. Or the antidepressant that keeps you functional. You already know the price at your local pharmacy is a joke, so you search online for options. You find a website called PharmacyChecker.com that does something simple and useful: it vets international pharmacies for safety standards and then shows you their prices side by side. It does not sell you anything. It does not ship you anything. It just gives you information, the kind of information that used to require a research librarian or a well-connected doctor.

Now imagine that a competitor company, one whose entire business model depends on being the gatekeeper of who gets to look “legitimate” in the online pharmacy world, decides that this information service is a threat. So they get to work. They coordinate with industry organizations to publish articles designed to make PharmacyChecker look dangerous. They help build a new internet domain system for pharmacies, a “.pharmacy” domain, and they design it so that PharmacyChecker cannot participate. They put PharmacyChecker on blacklists. They buy ads targeting people who search for PharmacyChecker. And then, through their relationship with a major pharmacy industry organization that counts Microsoft as a corporate member, they get a warning box inserted directly into Microsoft’s search engine results whenever anyone clicks on a PharmacyChecker link.

Think about what that warning box means to a 58-year-old without insurance who is comparing drug prices at 11pm. They see a government-looking warning. They get scared. They click away. The competitor company wins. The person without insurance pays full price, or they go without.

That is the injury at the center of this case. It is not abstract. The entire apparatus of organized medicine in America, through industry trade groups and a single private certification company, allegedly worked together to make one independent price comparison service disappear. And when that service fought back in court, the defendant’s legal strategy was to say: your users sometimes buy cheap drugs from Canada, so you have no rights. The court saw through it. But the years of coordinated suppression had already happened. The damage to a competitor that helped people find affordable medication had already been done. No ruling reverses that.


Legal Receipts: What the Court Actually Said

The Ninth Circuit’s May 2025 opinion is dense with legal precedent, but several passages cut through the noise and land directly on what LegitScript was trying to do and why the court rejected it.

  • LegitScript’s legal strategy attempted to reframe this safety and affordability mission as evidence of criminal facilitation, arguing that helping people find cheaper medication from foreign pharmacies made PharmacyChecker an illegal enterprise unworthy of court protection.
  • The court’s inclusion of this mission statement as a factual finding undercuts LegitScript’s characterization. The court treated PharmacyChecker as a legitimate information business, not a drug smuggling operation.
  • This is the factual foundation that collapses LegitScript’s entire legal argument. LegitScript claimed PharmacyChecker was so illegal it had no right to sue, but could not name a single law it broke or a single regulator who had ever gone after it.
  • The court found that LegitScript had not shown that visitors to PharmacyChecker’s website engaged in illegal activity simply by using it, meaning the “illegality” argument was based on speculation about what some users might do after clicking a link, not on PharmacyChecker’s actual conduct.
  • This Supreme Court precedent, applied here by the Ninth Circuit, says directly: it does not matter if a plaintiff has done something wrong. The purpose of antitrust law is to stop monopolistic behavior, and allowing defendants to escape accountability by attacking the plaintiff’s conduct would gut that purpose entirely.
  • In plain terms: you cannot commit a group boycott and then get away with it by pointing at your victim and calling them a bad person. The court called this LegitScript’s “in pari delicto” defense, and said it does not work here.
  • This passage catalogs the specific acts alleged in the boycott. These are coordinated industry actions, involving multiple named organizations, designed to de-platform and discredit a single competitor.
  • The “.pharmacy” domain allegation is particularly significant: it describes the construction of a new internet infrastructure specifically designed to exclude PharmacyChecker from the legitimacy signals that search engines and consumers use to evaluate online pharmacies.
“To rule otherwise would effectively frustrate the important public policy underlining the antitrust laws: encouragement of private antitrust suits in order to deter the illegal exercise of market power.” Ninth Circuit, citing Calnetics Corp. v. Volkswagen of America, Inc.
Case Timeline: From Alleged Boycott to Ninth Circuit Ruling August 2019 PharmacyChecker sues LegitScript + 4 industry orgs in New York for alleged group boycott under the Sherman Act ~1.5 yrs March 2021 NY court finds no jurisdiction over LegitScript (Oregon LLC) Case severed and transferred to Oregon federal court ~2 yrs March 2023 NY court grants summary judgment vs. PharmacyChecker on antitrust claims in the separate SDNY action ~3 mos June 2023 LegitScript moves for summary judgment in Oregon ~7 mos January 2024 Judge Simon denies LegitScript summary judgment; certifies appeal Feb 3, 2025 Argued before Ninth Circuit Portland, Oregon May 23, 2025 Ninth Circuit AFFIRMS. LegitScript must face trial. ~3.5 months
Who Allegedly Conspired to Blacklist PharmacyChecker.com LegitScript LLC Primary Defendant / Gatekeeper Natl Assoc. of Boards of Pharmacy SDNY Defendant Alliance for Safe Online Pharmacies SDNY Defendant Partnership for Safe Medicines SDNY Defendant Center for Safe Internet Pharmacies SDNY Defendant alleged coordination PharmacyChecker.com Plaintiff / Target of Alleged Boycott Price comparison + pharmacy accreditation smear articles, blacklists, ads, Bing warning box, .pharmacy domain

Societal Impact Mapping

Public Health

The alleged boycott did not just target a business. It targeted the mechanism by which ordinary people accessed information about affordable medication. Every tool deployed against PharmacyChecker made it harder for sick people to make informed choices about where to buy their drugs.

  • PharmacyChecker’s stated mission was to verify the safety of online pharmacies worldwide. Its accreditation work examined “practice and safety standards” to help users avoid counterfeit or substandard drugs. Suppressing the accreditor does not make online pharmacies safer; it removes independent verification from the market.
  • The Microsoft Bing warning box, allegedly coordinated through an industry organization with Microsoft as a corporate member, appeared whenever a user clicked on a PharmacyChecker search result. This functioned as a health-scare deterrent: users seeking legitimate price comparisons were warned away before they could read anything.
  • The “.pharmacy” internet domain was allegedly built as a gatekeeping system, designed so that PharmacyChecker, which accredits pharmacies by its own independent standards, could not participate. This concentrated the power to define “legitimate” pharmacy into the hands of the groups that also stood to benefit financially from fewer competitors.
  • The FDA’s own policy acknowledges that personal importation of foreign drugs is permitted in specific circumstances, including for serious conditions without available domestic treatment. PharmacyChecker’s service helped users navigate that space. The campaign against it removed a safety-oriented guide from a complex and risky market.
“LegitScript has not shown that visitors to PharmacyChecker’s website — including those visitors who clicked on links to non-U.S. pharmacies — engaged in illegal activity simply by using PharmacyChecker’s website.” Judge Michael H. Simon, U.S. District Court, Oregon

Economic Inequality

The price gap between U.S. prescription drugs and the same drugs sold abroad is not a secret. The entire reason PharmacyChecker had a business was that millions of Americans could not afford their prescriptions at domestic prices. The alleged boycott attacked the tool people without resources were using to bridge that gap.

  • About 56% of PharmacyChecker’s total revenue came from U.S. users clicking links to foreign pharmacies, meaning the majority of its business served Americans actively seeking cheaper options abroad. This was not a fringe use case; it was the core of what the site did for people in financial need.
  • PharmacyChecker’s business model included verification fees paid 84% by foreign pharmacies and click-through fees from foreign pharmacy links generating 95% of that revenue stream. These numbers show the market PharmacyChecker served: the international price comparison market that domestic U.S. pharmacies and their industry groups have every incentive to suppress.
  • The companies and organizations that allegedly coordinated the boycott include the National Association of Boards of Pharmacy, the Partnership for Safe Medicines, and the Center for Safe Internet Pharmacies. These organizations represent institutional pharmacy interests, not patients. Their participation in alleged anticompetitive conduct to remove a price comparison service is a direct financial conflict of interest.
  • LegitScript, the company at the center of the alleged boycott, is itself a private, for-profit certification company. Its revenue depends on pharmacies paying for its certification services. A company that independently verified pharmacies and compared their prices was a direct economic competitor, and its removal from the market benefited LegitScript’s revenue stream.
  • The legal costs PharmacyChecker has incurred defending its right to exist in court across two federal jurisdictions (New York and Oregon) over more than five years represent a resource drain that a larger, industry-backed organization would not face. The litigation itself is an economic weapon against a smaller competitor.
PharmacyChecker Revenue Breakdown: Where the Money Came From (January 2015 – August 2021) 0% 25% 50% 75% 100% 85% Click-Through Fees (Total) ~81% Click-Through from Foreign RX 56% U.S. Users → Foreign Pharmacies 14% Verification Fees 0.2% Discount Cards Source: Court record, PharmacyChecker.com LLC v. LegitScript LLC, No. 24-2697

The “Cost of a Life” Metric

The court record contains one telling data point about the actual scale of consumer engagement with PharmacyChecker’s foreign pharmacy links: the gap between what LegitScript claimed and what the evidence showed.

3.47%

The share of clicks from PharmacyChecker.com that actually resulted in a drug transaction, according to deposition testimony from one online pharmacy. LegitScript’s expert estimated 7.5 million total clicks over the Relevant Period. That means roughly 260,250 actual drug transactions were at issue at most, out of 7.5 million site visits.

LegitScript used the potential illegality of these 260,250 transactions to argue that PharmacyChecker had no legal right to sue for being driven out of a multi-million dollar market. The court found this insufficient to strip antitrust standing.

~30%

The share of PharmacyChecker’s click-through fees generated by users outside the United States. LegitScript itself acknowledged this figure. It means more than a quarter of PharmacyChecker’s business was unambiguously legal international commerce, entirely separate from any U.S. drug import question.

LegitScript’s legal argument effectively asked the court to let it destroy a competitor’s entire business because of questions about one portion of that business, while conceding that a significant portion was lawful. The court refused.


What Now? Who to Watch and What to Do

The Ninth Circuit has ruled that PharmacyChecker can proceed with its antitrust lawsuit. The case now moves toward discovery and trial on the merits of the alleged group boycott itself. Here is who to watch and what ordinary people can do.

Defendants and Key Organizations to Watch

  • LegitScript LLC: The primary defendant in the Oregon action. A private, for-profit pharmacy certification company organized under Oregon law. Its entire business model depends on being the recognized gatekeeper of online pharmacy legitimacy.
  • National Association of Boards of Pharmacy (NABP): Named as an SDNY defendant. A non-profit organization that represents state pharmacy regulatory boards. Its alleged coordination with LegitScript to build the .pharmacy domain and publish disparaging content represents a significant conflict of interest for a body meant to serve public safety.
  • Alliance for Safe Online Pharmacies (ASOP): Named SDNY defendant. An industry coalition. Alleged to have added PharmacyChecker to its “Not Recommended Sites” list as part of the coordinated campaign.
  • Partnership for Safe Medicines (PSM): Named SDNY defendant. An advocacy organization. Alleged participant in the coordinated campaign against PharmacyChecker.
  • Center for Safe Internet Pharmacies Ltd. (CSIP): Named SDNY defendant. Allegedly counts Microsoft as a corporate member and is alleged to have been the conduit through which the Microsoft Bing search warning box against PharmacyChecker was arranged.

Regulatory Watchlist

  • Federal Trade Commission (FTC): The primary U.S. antitrust enforcement agency. The FTC has authority to investigate group boycotts and anticompetitive coordination among competitors. This case involves exactly the kind of coordinated market exclusion the FTC’s mandate is designed to address.
  • Department of Justice Antitrust Division (DOJ): The DOJ can pursue criminal antitrust cases where coordination among competitors rises to the level of per se violations. A coordinated group boycott involving multiple industry organizations warrants scrutiny.
  • Food and Drug Administration (FDA): The FDA’s personal importation policy already acknowledges circumstances where cross-border drug purchases are permitted. Any regulatory clarification that narrows the gray zone that LegitScript exploited as a legal weapon against PharmacyChecker would reduce the available tools for this kind of predatory litigation.
  • State Attorneys General: State-level antitrust enforcement is an underutilized tool. Any state whose residents relied on PharmacyChecker for drug price comparisons has a potential interest in the consumer protection dimensions of this case.
  • Internet Corporation for Assigned Names and Numbers (ICANN): The .pharmacy domain was allegedly built as a gatekeeping instrument. ICANN governs the assignment and structure of internet domains. The design of a domain specifically to exclude a competitor from legitimacy signals deserves scrutiny at the level where domain policy is made.

Mutual Aid and Grassroots Action

  • Document your drug costs: If you have used PharmacyChecker or similar services to access medication you could not otherwise afford, your experience is relevant public record. Consumer advocacy organizations that track drug pricing data need individual accounts to build systemic cases before regulators.
  • Support independent pharmacy accreditation: The alleged boycott targeted an independent accreditor. The existence of competing, non-industry-captured verification services for online pharmacies is a consumer protection good. Support and amplify independent verification services that are not financially entangled with the pharmacy industry they are supposed to evaluate.
  • Push for congressional action on drug importation: The legal gray zone that LegitScript weaponized in this case exists because federal drug importation law is ambiguous for individual consumers. Legislation that clearly legalizes personal importation from licensed foreign pharmacies removes that gray zone and the litigation weapon it provides to industry gatekeepers.
  • Contact your state pharmacy board: The National Association of Boards of Pharmacy is an umbrella organization, but individual state pharmacy boards set local policy. Constituents can ask their state boards whether they support or have financially contributed to organizations that conduct coordinated campaigns against consumer-facing price comparison services.
  • Follow the Oregon case: Case number 3:22-cv-00252-SI in the U.S. District Court for the District of Oregon. This is where the antitrust trial on the merits of the alleged boycott will play out. Public court filings are available through PACER. Journalism that covers this case keeps pressure on defendants who might otherwise prefer it to resolve quietly.
What LegitScript Claimed vs. What the Court Found What LegitScript Claimed What the Court Found
PharmacyChecker’s business was illegal because it facilitated drug importation that violates the FFDCA.
No law PharmacyChecker violated was identified. No prosecution, no cease-and-desist, no regulatory action of any kind.
PharmacyChecker’s facilitation of illegal activity was so extensive it had no legal rights worth protecting in court.
Only ~3.47% of clicks led to purchases. 30% of click revenue came from non-U.S. users, conceded as legal by LegitScript itself.
The New York court already ruled PharmacyChecker lacked antitrust standing, so the Oregon court should apply issue preclusion and dismiss.
Issue preclusion rejected. The NY ruling was not final, not appealable, and the Second and Ninth Circuits apply different legal standards. LegitScript did not challenge this on appeal.
A plaintiff involved in any illegal conduct should be barred from antitrust recovery as a matter of public policy.
Rejected by Supreme Court precedent. Allowing this defense would “seriously undermine the usefulness of private antitrust actions.” Both parties’ wrongs can be addressed separately.

The source document for this investigation is attached below.

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Aleeia
Aleeia

I'm Aleeia, the creator of this website.

I have 6+ years of experience as an independent researcher covering corporate misconduct, sourced from legal documents, regulatory filings, and professional legal databases.

My background includes a Supply Chain Management degree from Michigan State University's Eli Broad College of Business, and years working inside the industries I now cover.

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