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UPDATE 2-Court throws out a J&J claim in Red Cross suit

Tue Nov 6, 2007 4:31pm EST

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(Adds J&J's comment)

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NEW YORK, Nov 6 (Reuters) - A U.S. court has thrown out a key claim brought by Johnson & Johnson (JNJ.N) in a lawsuit against the American Red Cross over the use of the red cross symbol.

Other portions of the case can go forward, according to the ruling by U.S. District Judge Jed Rakoff in Manhattan. The order was issued on Monday but made public on Tuesday.

The judge granted a request by the American Red Cross to dismiss a claim in J&J's lawsuit contending that the relief organization had promised not to engage in certain commercial activity, including licensing the red cross symbol to others and selling first-aid products in competition with J&J, according to court papers.

J&J had sued American Red Cross in August over the use by the relief group and its partners of J&J's trademark red cross logo on first-aid kits, hand sanitizer and medical gloves sold to the public.

In his ruling, the judge also limited the scope of another claim to allegations of interference with J&J's economic relations with Target Corp (TGT.N), Wal-Mart Stores Inc (WMT.N), Walgreen Co (WAG.N) and CVS Caremark Corp (CVS.N).

Rakoff, however, denied a request by the relief group and other defendants to throw out certain other breach-of-contract and interference claims brought by the drug maker.

"We are pleased with the court's decision, which denies in large part the Red Cross's motion to dismiss," J&J spokesman Marc Monseau said. "The decision clears the way for J&J to proceed with seven of the eight claims that were originally alleged and allows the case to move forward as planned."

In a statement, the American Red Cross said a "very significant portion" of the lawsuit had been dismissed and called for J&J to end the case.

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

The court has set a schedule for hearing the remaining claims early next year, the American Red Cross said. (Reporting by Paritosh Bansal; Additional reporting by Esha Dey in Bangalore; Editing by Dave Zimmerman and Braden Reddall)



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