ACTCA, a Member of the Alliance, Inc. v. Rhythm Pharmaceuticals, Inc.

I. INTRODUCTION AND BACKGROUND

On December 21, 2021, plaintiff ACTCA, A Member of the Alliance, Inc. (“ACTCA”) filed this action against defendant Rhythm Pharmaceuticals, Inc. (“Rhythm” or “defendant’”) and Does 1 through 10 in Los Angeles Superior Court. Dkt. 1-4, Exh. D. Defendant removed the case to this Court on the basis of diversity jurisdiction. Dkt. 1. Plaintiff alleges a state law claim for breach of contract, as against all defendants. Id. J 14-18. Plaintiff's claim arises out of a series of written agreements between defendant Rhythm and plaintiffs ACTCA; SFCT, A Member of the Alliance, Inc.; ICTLV, Inc.: and NYCT, A Member of the Alliance, Inc., (collectively “Axis” or “plaintiff’) to conduct two separate clinical trials. Id. 8. Axis alleges that Rhythm failed to tender the amounts owed to Axis pursuant to the agreements. Id. § 11-12. On April 14, 2022, Rhythm filed the operative First Amended Counterclaims against Axis. Dkt. 26. Its remaining claims at trial were for: (1) breach of contract; (2) breach of the implied covenant of good faith and fair dealing; and (3) breach of the implied duty to perform with reasonable care. Dkt. 51 at…