Alabama Governor Signs ‘Innovator Liability’ Law

Companies in Alabama would be protected from lawsuits related to products they didn’t make under newly passed legislation.

Gov. Robert Bentley on Friday signed into law a bill that says manufacturers are not liable for damages from products they didn’t design, manufacture, sell or lease.

The legislation follows a 2014 Alabama Supreme Court ruling that said brand name drugmakers and device manufacturers could be sued over side effects caused by generic versions.

Bill sponsor Sen. Cam Ward says preventing “innovator liability” is beneficial not only for pharmaceutical companies but for all manufacturers in the state.

Bentley says the legislation is important for recruiting businesses to the state.

The new law goes into effect later this year.