Supreme Court Declines Hi-Tech Pharmaceuticals’ Appeal in $40M FTC Judgment

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Last year, the Eleventh Circuit rejected Hi-Tech’s appeal because it was brought over a district court’s contempt finding, not the underlying FTC order. The appeals panel wrote that the AMG Capital decision “did not concern a district court’s ability to enforce its own orders and thus had no bearing on the contempt sanctions at issue.”

In December, Hi-Tech CEO Jared Wheat and Senior Vice President Stephen Smith made one final appeal to the high court, claiming that a circuit split over AMG Capital’s holdings justified a hearing before the justices.

“The court should hold that AMG Capital’s reasoning — that the FTC Act precludes the commission from skipping administrative proceedings to obtain equitable monetary remedies directly in court under Section 13(b) — applies equally in the context of remedying contempt of a Section 13(b) permanent injunction,” the company wrote in its petition.

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In its response brief, the commission argued that, as the Eleventh Circuit had already ruled, the AMG Capital decision doesn’t apply to district court judgments for contempt.