RICHARD J. SULLIVAN, District Judge:
Plaintiff Cephalon, Inc. ("Cephalon") brings this action against The Travelers Companies, Inc. ("Travelers, Inc.") and four of its subsidiaries, Travelers Indemnity Company, Travelers Casualty and Surety Company, St. Paul Fire and Marine Insurance Company, and The Standard First Insurance Company (collectively, "Travelers"), seeking a declaratory judgment that Cephalon's off-label promotion of the pain-management drug Actiq did not violate the Food, Drug and Cosmetics Act (the "FDCA") and that such promotion did not cause injury to Travelers. Before the Court is Travelers' motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) or to transfer the case pursuant to 28 U.S.C. § 1404(a). For the reasons that follow, the Court grants Travelers' motion to dismiss.
On May 23, 2012, Travelers, Inc., an insurance company incorporated in Minnesota with its principal place of business in New York, sent pre-suit settlement correspondence to Cephalon, a pharmaceutical manufacturer incorporated in Delaware with its principal place of business in Pennsylvania, accusing Cephalon of improperly promoting off-label use of its pain-management drug Actiq.
On June 29, 2012, Travelers, Inc. replied with a letter from retained counsel. (Id. Ex. 3.) In the letter, Travelers, Inc.'s attorneys (1) advised that they had been retained "in connection with pursuing possible litigation"; (2) questioned the dismissive tone of Cephalon's response given ongoing Actiq litigation "including, but not limited to, the [action] pending in the Eastern District of Pennsylvania"; and (3) asked that Cephalon reply to the letter "no later than July 13, 2012 so that [the parties] may further discuss this matter. Should [Cephalon] fail to do so, Travelers[, Inc. would] have no alternative but to commence suit in an appropriate court of law." (Id.)
Cephalon did not respond. Instead, on July 12, 2012, it filed this declaratory action, claiming that (1) there is no private right of action under the FDCA; (2) it had not caused injury to Travelers, Inc.; and (3) Travelers, Inc. had suffered no injury. (See Compl., dated July 12, 2012, Doc. No. 1 ("Compl."), at 5.) In its Complaint, Cephalon quoted the pre-suit correspondence, grounding its claim in the fact that "Travelers[, Inc.] has also threatened Cephalon that `it has every intention of pursuing its claims to recover the losses it sustained,' and that if it does not hear from Cephalon by July 13, 2012, it `will have no alternative but to commence suit in an appropriate court of law.'" (Reardon Decl. Ex. 3; see Compl. Ex. A.)
Two weeks later, on July 24, 2012, Travelers, Inc.'s four subsidiaries—though not Travelers, Inc. itself—filed suit against Cephalon in the Eastern District of Pennsylvania asserting multiple state claims arising from the same course of conduct at issue in this action. (See Reardon Decl. Ex. 1.) The subsidiaries also named Cephalon's parent companies, Teva, Inc. and Teva USA, as defendants. (Id.) Teva, Inc. is an Israeli corporation with its principal place of business in Israel, while Teva USA is a Delaware corporation with it principal place of business in Pennsylvania. (Id.) Each of the Travelers, Inc. subsidiaries are Connecticut corporations with their principal places of business in Connecticut. (Id.) The Eastern District of Pennsylvania was the site of a number of civil suits against Cephalon related to Actiq, including at least one pending action that is proceeding toward class certification and trial. See In re Actiq Sales & Mktg. Practices Litig., No. 07 Civ. 4492(PBT), 2012 WL 2135560 (E.D.Pa. June 13, 2012).
Thereafter, on September 20, 2012, Cephalon amended its Complaint to include the four Travelers, Inc. subsidiaries as defendants. (Doc. No. 20.) Cephalon also added factual content to its Complaint and removed the quote from Travelers, Inc.'s June 29, 2012 pre-suit letter. (See Reardon Decl. Ex. 5 (comparing Initial and Amended Complaints).)
Travelers filed the instant motion on November 15, 2012. (Doc. No. 34.) Cephalon responded on December 17, 2012, and Travelers replied on December 28, 2012. (Doc. Nos.37, 41.) The Court heard argument on January 25, 2013.
In its motion to dismiss, Travelers argues that the Court should decline to exercise jurisdiction over Cephalon's action because (1) the action is improperly anticipatory, (2) it is motivated by forum shopping alone, (3) the balance of conveniences weighs in favor of the Eastern District of Pennsylvania action, and (4) allowing the action to proceed would be contrary to public policy. Alternatively, Travelers argues that the Court should transfer the action because the transfer factors favor the Eastern District of Pennsylvania as the appropriate forum. For the following reasons, the Court grants Travelers' motion to dismiss solely on the ground that Cephalon's declaratory action was improperly anticipatory.
The first-filed rule dictates that "[w]here there are two competing lawsuits, the first suit should have priority" in order to avoid duplicative litigation and honor the plaintiff's choice of forum. Emp'rs Ins. of Wausau v. Fox Entm't Grp., Inc., 522 F.3d 271, 274-75 (2d Cir.2008). While the rule requires a "general presumption" that a first-filed suit has priority, the presumption is not "applied in a rigid or mechanical way." Dornoch Ltd. v. PBM Holdings, Inc., 666 F.Supp.2d 366, 369 (S.D.N.Y.2009) (internal quotation marks omitted). Instead, the Second Circuit has recognized limited exceptions "where `special circumstances' warrant giving priority to the second suit." Emp'rs Ins. of Wausau, 522 F.3d at 275. "Special circumstances," while "rare," include when a "first-filed lawsuit is an improper anticipatory declaratory judgment action." Id. at 275-76.
Generally, courts are empowered to "declare the rights and other legal relations of any interested party seeking such [a] declaration" in "a case of actual controversy." 28 U.S.C. § 2201(a). However, the "federal declaratory judgment is not a prize to the winner of a race to the courthouses." Factors Etc., Inc. v. Pro Arts, Inc., 579 F.2d 215, 219 (2d Cir.1978), abrogated on other grounds by Pirone v. Mac-Millan, Inc., 894 F.2d 579, 586 (2d Cir. 1990). Accordingly, courts may consider "equitable, prudential, and policy arguments" in determining whether to entertain a declaratory action, MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118, 136, 127 S.Ct. 764, 166 L.Ed.2d 604 (2007), "particularly when there is a pending proceeding in another court, state or federal, that will resolve the controversies between the parties," Great Am. Ins. Co. v. Houston Gen. Ins. Co., 735 F.Supp. 581, 584 (S.D.N.Y.1990); see also Amusement Indus., Inc. v. Stern, 693 F.Supp.2d 301, 311 (S.D.N.Y.2010) (collecting cases). "A rush to file first in anticipation of litigation in another tribunal, thereby enabling a potential defendant to choose the forum and governing law by which to adjudicate the dispute, and otherwise to interfere with or frustrate the other party's pursuit of claims elsewhere, is one of the equitable considerations a court may weigh in ruling on a request for declaratory relief." Dow Jones & Co., Inc. v. Harrods, Ltd., 237 F.Supp.2d 394, 440 (S.D.N.Y.2002). Thus, if a declaratory action is filed as "a means of gaining a procedural advantage and preempting the forum choice of the complainant in a coercive action, ... the coercive suit is given precedence." Reliance Ins. Co. v. Bend'N Stretch, Inc., 935 F.Supp. 476, 478 (S.D.N.Y.1996).
In the Second Circuit, a suit is improperly anticipatory if it was "filed in response to a direct threat of litigation that gives specific warnings as to deadlines and subsequent legal action." Emp'rs Ins. of Wausau, 522 F.3d at 276. "The Second Circuit has held that the
Courts in this district have thus routinely dismissed declaratory actions that were prompted by receipt of a notice letter. In Factors Etc., Inc., the district court declined to dismiss a later-filed action where the first-filed declaratory action had followed on the heels of a cease-and-desist letter informing the defendant of the plaintiff's intention to sue to protect its copyright. 579 F.2d at 217. The Second Circuit affirmed, noting that the defendant's declaratory action had been filed "in apparent anticipation" of litigation because it, was "triggered by a notice letter." Id. at 219. Similarly, in CGI Solutions, LLC v. Sailtime Licensing Group, LLC, the court dismissed a declaratory action filed after the plaintiff had received a letter informing it that the defendant intended to "pursue all civil remedies available [and] ... [might] file a lawsuit" for specific causes of action and seeking certain relief. No. 05 Civ. 4120(DAB), 2005 WL 3097533, at *3-4 (S.D.N.Y. Nov. 17, 2005). In Federal Ins. Co. v. May Dep't Stores Co., the court dismissed a declaratory action where the plaintiff filed suit four days prior to a "drop-dead" date in a notice letter. 808 F.Supp. 347, 350 (S.D.N.Y.1992). And in 242 Partners, L.P. v. Gelb, the court dismissed a declaratory action as motivated by "procedural gamesmanship and a sprint to the courthouse" when the defendant had notified the plaintiff by letter of his intent to file suit within thirty days if his demands were not met. No. 12 Civ. 2561(HB), 2012 WL 2309060, at *2 (S.D.N.Y. June 18, 2012); see also AFA Dispensing Grp. B.V. v. Anheuser-Busch, Inc., 740 F.Supp.2d 465, 470-71 (S.D.N.Y. 2010); Chicago Ins. Co., 2000 WL 777907, at *3; Mondo, Inc., 1998 WL 17744, at *2.
Where courts have entertained a declaratory action despite the plaintiff's receipt of pre-suit correspondence, all three indicia of impending litigation have been absent. For instance, in Employers Insurance of Wausau, the Second Circuit reversed dismissal of a declaratory action despite the fact that the plaintiffs had received a string of pre-suit correspondence because the letters merely sought information and settlement negotiations; they did not specify claims, nor a date or forum for filing. 522 F.3d at 276. Additionally, correspondence between the parties stretched out for nearly a year. Id. Thus, the Second Circuit noted that "[a]lthough litigation was clearly on the horizon... there was no notice letter or other communication conveying a specific threat of litigation." Id. Similarly, courts have declined to find actions improperly anticipatory where letters only "mentioned the general possibility of future legal action," but did not specify specific claims, nor a date or forum for filing. Fandino v. Amalgam Entm't, LLC, No. 09 Civ. 8325(SAS), 2010 WL 607819, at *3 (S.D.N.Y. Feb. 19, 2010).
Because Cephalon's action was "filed in response to a direct threat of litigation that g[ave] specific warnings as to deadlines and subsequent legal action," Emp'rs Ins. of Wausau, 522 F.3d at 276, the Court concludes that it is improperly anticipatory. For that reason, Travelers' motion to dismiss is granted.