Tenth Circuit Expands PREP Act Immunity to Contract Claims
Pharmaceutical and healthcare entities facing contract-based litigation tied to COVID-19 countermeasures now have broader statutory immunity under the PREP Act following a precedential Tenth Circuit ruling.
The U.S. Court of Appeals for the Tenth Circuit reversed a district court decision in Dressen v. AstraZeneca AB, holding that the PREP Act's immunity provision covering 'claims for loss' extends to contract claims, not merely tort claims. The unanimous published opinion resolves a question of first impression and significantly expands the scope of immunity available to manufacturers and administrators of covered countermeasures. The court also affirmed immediate appellate review under the collateral-order doctrine because statutory immunity would be irretrievably lost without it. The case was remanded solely to assess whether AstraZeneca contractually waived its immunity. In-house counsel for life sciences and healthcare organizations should review informed consent agreements and related contracts to evaluate waiver risk and immunity preservation strategies.