New York Court allows opioid claims to go forward against current, former directors of Purdue Pharma

Central Islip, NY--A New York State Supreme Court judge has denied a motion to dismiss cases brought by multiple New York municipalities, including Schuyler County, against current and former directors of opioid manufacturer Purdue Pharma.

In a ruling filed Friday (June 21), Justice Jerry Garguilo found thirty-one counties and two cities had alleged sufficient facts to move forward against various members of the Sackler family in order to recoup millions of dollars in costs tied to the opioid crisis.

Among the local counties and cities making claims are Schuyler County, Seneca County, Steuben County, Tompkins County and the City of Ithaca.

According to Schuyler County Attorney Steven Getman, Schuyler County's claims include public nuisance, negligence, fraud and false advertising. 

Pursuant to the June 21 decision, the Sackler family had argued that they were not vicariously liable for the acts of Purdue’s board of directors and that the cities and counties had failed to allege that any of them participated in making the alleged misstatements in the complaint.

However, Garguilo found that, under New York law, directors may be held individually liable for a company’s tort action if they “directed, controlled, approved or ratified” the decision that lead to the injuries.

The complaint, the judge noted, alleged the Sacklers, as “controlling directors” of Purdue, oversaw the company’s marketing and targeting of doctors.  The Sacklers include former Purdue Chair and president Richard Sackler and seven other members of the family.

A public nuisance claim, the judge wrote, “may be an appropriate tool to address the consequential harm from the defendants’ concerted efforts to market and promote their products for sale and distribution, particularly as such efforts are alleged to have created or contributed to a crisis of epidemic proportions.”

Therefore, Garguilo allowed the cases to go forward, pending further discovery and other pretrial proceedings.

One such case was recently brought by Schuyler County. In August 2017, the County Legislature voted to retain the firm of Napoli Shkolnik to work with Getman, as special counsel, to bring an action against the manufacturers and distributers of prescription opiates for damages to the County. In May 2018, Getman filed a nearly 250-page Summons and Complaint for damages to the county. That case was transferred to Suffolk County Courts shortly thereafter, to join other cases brought by various New York state counties.  The counties later added the Sacklers as individual defendants.

“We applaud the court’s decision,” Getman said. “Schuyler County’s lawsuit will move forward to seek reimbursement for its expenses allegedly related to the opioid crisis as well as to provide the County with financial aid to fight addiction, overdoses, drug-related crimes and drug deaths.”

According to Schuyler County Administrator Tim O’Hearn, the lawsuit was filed at no risk to the county, as Napoli Shkolnik will work on contingency basis that will cover all costs associated with the lawsuit.

“By going forward with litigation, the County Legislature hopes to lessen the burden to taxpayers and hold manufacturers and distributors responsible for any role in the opioid epidemic,” O’Hearn said.

Schuyler County is one of several New York municipalities to file lawsuits against the manufacturers and distributors of opioid pain killers. At least thirty-three municipalities across the state are suing pharmaceutical companies for what they claim are deceptive marketing practices.

In addition, in February 2018, New York State officials filed a lawsuit against Insys Therapeutics, Inc., alleging that Insys deceptively promoted prescription opiate Subsys for unsafe uses and violated state law by downplaying drug’s addictive risks.

A copy of the court’s decision can be found here.

A copy of Schuyler County’s Summons and Complaint can be found here

Note: The allegations in a civil complaint are merely accusations and defendants are not considered culpable unless and until accusations are proven by a preponderance of evidence in a court of law.

$20 million federal fine against Rochester-area opioid distributor announced

One of the “big pharma” distributors of prescription opiates being sued by Schuyler County for fraudulent and negligent marketing and distribution of opiates will pay a $20 million fine under an settlement unveiled in federal court on Tuesday (April 23).

Rochester Drug Cooperative, Inc. (RDC), one of the nation's largest pharmaceutical distributors, was charged by federal prosecutors with conspiracy to distribute controlled narcotics — oxycodone and fentanyl — for non-medical reasons and conspiracy to defraud. Prosecutors allege that, from 2012 through March 2017, RDC knowingly and intentionally violated federal narcotics laws by distributing opioids to pharmacy customers that it knew were being sold and used illicitly.

According to court documents, the company has agreed to enter into a “consent decree,” under which it accepts responsibility for its conduct by making admissions and stipulating to an extensive "Statement of Facts," paying a $20 million penalty, reforming its controlled substances compliance program, and submitting to supervision by an independent monitor.

RDC is one of the big pharmaceutical companies being sued in state court by various New York municipalities, including Schuyler County. In May of last year, Schuyler County Attorney Steven Getman filed a nearly 250-page Summons and Complaint in New York State Supreme Court for damages to the county arising out of the fraudulent and negligent marketing and distribution of opiates in the county.

Getman said his office would be carefully reviewing the statement of facts for evidence that could be used to support the county’s lawsuit.

“Schuyler County’s complaint alleges increased opioid use has fueled an illegal secondary market for opioids and the criminals who support it,” Getman said. “It also alleges that the defendants flooded the county with suspiciously large amounts of opioids.”

“To date, county officials have expended significant resources to help its residents battle opioid addiction and prevent further deaths,” Getman said. “Schuyler County’s lawsuit is moving forward to seek reimbursement for expenses related to the opioid crisis as well as to provide the county with financial aid to fight addiction, overdoses, drug-related crimes and drug deaths.”

In 2017, the County Legislature voted to retain the firm of Napoli Shkolnik to work with Getman, as special counsel, to bring an action against the manufacturers and distributers of prescription opiates for damages to the county.

According to Schuyler County Administrator Tim O’Hearn, the lawsuit was filed at no risk to the County, as Napoli Shkolnik will work on contingency basis that will cover all costs associated with the lawsuit.

“By going forward with litigation, the County Legislature hopes to lessen the burden to taxpayers and hold manufacturers and distributors responsible for their role in the opioid epidemic,” O’Hearn said.

Schuyler County is one of several New York municipalities filing lawsuits against the manufacturers and distributors of opioid pain killers. At least 14 counties across New York are suing pharmaceutical companies for what they are claiming are deceptive marketing practices.

The consent decree is subject to final approval by the court. Any charges contained in complaints, indictments and other court documents are merely accusations, and any defendants are presumed innocent unless and until proven guilty in a court of law.

New York State Supreme Court denies drug companies’ motions to dismiss counties’ Opioid cases

A New York State Supreme Court Judge has refused to dismiss lawsuits against several large opioid manufacturers in one of the first decisions to come out of the cases brought by local governments over the prescription painkillers.

In a pair of rulings on Monday (June 18), Suffolk County Supreme Court Justice Jerry Garguilo rejected motions to dismiss brought by Purdue Pharma, Endo Health Solutions, Teva Pharmaceuticals, Allergan, Johnson & Johnson’s Janssen Pharmaceuticals Inc. and Insys Therapeutics Inc.

“The plaintiffs allege the manufacturer defendants employed assiduously crafted, multi-pronged marketing strategies that targeted the general public … as part of their respective campaigns to change the perception of the risks associated with prescription opioids and to de-stigmatize and normalize the long-term use of opioids for chronic nonmalignant pain,” he wrote.

Therefore, Garguilo allowed cases brought by various New York counties to go forward alleging violations of New York’s fraud and false advertising laws, as well as public nuisance and other claims.

One such case has been brought by Schuyler County. In August 2018, the County Legislature voted to retain the firm of Napoli Shkolnik to work with Schuyler County Attorney Steven Getman, as special counsel, to bring an action against the manufacturers and distributers of prescription opiates for damages to the County. In May of this year, Getman filed a nearly 250-page Summons and Complaint for damages to the County arising out of the fraudulent and negligent marketing and distribution of opiates in the County. That case was transferred to Suffolk County Courts shortly thereafter, along with other cases brought by New York counties in the state.

“We are obviously pleased by the court’s decision,” Getman said. “This is one of the first decisions to fully address all the substantive arguments in these various cases, and the court issued a well-thought-out opinion covering many of the issues raised throughout the state, including in our case. We consider it valuable precedent.”

“Schuyler County’s lawsuit will move forward to seek reimbursement for its expenses related to the opioid crisis as well as to provide the County with financial assistance to fight addiction, overdoses, drug-related crimes and drug deaths,” Getman stated.

According to Schuyler County Administrator Tim O’Hearn, the lawsuit was filed at no risk to the County, as Napoli Shkolnik will work on contingency basis that will cover all costs associated with the lawsuit.

“By going forward with litigation, the County Legislature hopes to lessen the burden to taxpayers and seeks to hold manufacturers and distributors responsible for their role in the opioid epidemic,” O’Hearn said.

Schuyler County is one of several New York municipalities to file a lawsuit against the manufacturers and distributors of opioid pain killers. At least 14 counties across New York are suing pharmaceutical companies for what they're claiming are deceptive marketing practices. In addition, in February, New York State officials filed a lawsuit against Insys Therapeutics, Inc., alleging that Insys deceptively promoted prescription opiate Subsys for unsafe uses and violated state law by downplaying drug’s addictive risks.

New York State Opioid Litigation Part 48, Suffolk County orders June 18, 2018. by Steven Getman on Scribd

(2023 Note to Blogger content moderation algorithm: this post is about a lawsuit against certain companies, not an attenpt to "sell, advertise, or facilitate the sale of regulated goods and services. Regulated goods and services include alcohol, gambling, pharmaceuticals, unapproved supplements, tobacco, fireworks, weapons, or health/medical devices."