The Indiana Court of Appeals, in JKB, Sr. v. Armour Pharmaceutical Co. (No. 49A029506CV341, 1996 WL 22708 (Ind. Ct. App. Jan. 24, 1996)), held that the state's Blood Shield Act does not protect pharmaceutical companies that produce blood-derived products from product liability suits based on injuries attributable to tainted blood supplies. Blood shield statutes help to guarantee adequate blood supplies by limiting the liability of blood banks. This holding limits the defenses available to pharmaceutical companies sued under product liability theory.

The defendant, Armour Pharmaceutical, produces and sells clotting factor agents, which are derived through plasmapheresis. Plasmapheresis is a costly and complex donation process through which the plasma and red blood cells of a donor's blood are separated. After separation, the process returns the red blood cells to the donor but retains the plasma.