Carr: Georgia In on $10B Purdue Pharma Deal, but Opioid Litigation Continues
"This move by Purdue Pharma was not unexpected, and we have joined a number of states in preparing accordingly," Georgia Attorney General Chris Carr said. "Our focus from the beginning has been to hold those accountable for their role in fueling the opioid crisis and to quickly and efficiently get resources into the hands of those who are struggling."
September 18, 2019 at 04:25 PM
5 minute read
While Georgia has agreed to the planned $10 billion settlement with OxyContin maker Purdue Pharma, the state's opioid litigation against a string of other drug companies and distributors will continue in the Gwinnett County business court, Attorney General Chris Carr has said.
Carr also said Purdue's bankruptcy won't affect the state's ability to recover.
Purdue announced both the settlement and the bankruptcy Sunday, saying the structure will provide more than $10 billion of company value to state and local governments that have filed litigation, as well as to individuals affected by the opioid addiction epidemic.
"This unique framework for a comprehensive resolution will dedicate all of the assets and resources of Purdue for the benefit of the American public," Purdue's board of directors chairman Steve Miller said in announcing the news Sunday. "This settlement framework avoids wasting hundreds of millions of dollars and years on protracted litigation, and instead will provide billions of dollars and critical resources to communities across the country trying to cope with the opioid crisis. We will continue to work with state attorneys general and other plaintiff representatives to finalize and implement this agreement as quickly as possible."
Carr released statements Monday evening and Tuesday afternoon in answer to reporters' inquiries, confirming that Georgia was among the 24 states in the deal with Purdue. Carr's statements backed up the Purdue chairman.
"This move by Purdue Pharma was not unexpected, and we have joined a number of states in preparing accordingly," Carr said. "Our focus from the beginning has been to hold those accountable for their role in fueling the opioid crisis and to quickly and efficiently get resources into the hands of those who are struggling. Along with a majority of state attorneys general and localities pursuing litigation against Purdue Pharma and the Sackler family, we have agreed to a proposed framework that we believe holds them accountable while securing for Georgians the best possible chance to get the help they deserve."
Carr agreed with Purdue that the settlement deal, if approved by the bankruptcy court, could provide a total of $10 billion. "Conversely, there is no guarantee of what could be recovered in a 'free fall' Chapter 11 bankruptcy," Carr said.
Litigation against many other defendants remains pending, Carr added.
"It is important to note, these efforts to hold accountable Purdue Pharma and the Sackler Family for their role in fueling the opioid epidemic are extremely important, but we continue to also work to hold other manufacturers, as well as distributors, accountable," Carr said. "Our office will continue to pursue our Georgia-specific litigation in the Business Case Division of the Gwinnett County Superior Court—even if Purdue gets dropped."
Carr hired outside counsel last year to handle opioid litigation. They filed a January lawsuit in Gwinnett County Superior Court against a long list of drugmakers, alleging that they fueled the opioid addiction crisis for profit with false advertising that understated the dangers and exaggerated the benefits of their products.
The complaint accused drugmakers of paying "front groups" and "key opinion leaders" to promote pills while deceptively appearing to be unbiased. The complaint alleged the drugmakers flooded the market with pills without providing the required monitoring, paving the way for improper use. And the complaint accused the companies of unleashing a deluge of opioids into Georgia, then failing to prevent the diversion of the drugs away from legitimate medical providers and pharmacies and into the black market.
The team Carr hired last September includes a powerhouse plaintiffs firm from Alabama and some well-known litigators in Georgia, to investigate and file lawsuits against makers and sellers of opioid drugs. Those firms are working on a contingency-fee arrangement. John Bevis of the Barnes Law Group in Marietta is a special assistant attorney general for opioid litigation. The Barnes Law Group is working with the Cooper Firm in Marietta, Franklin Law in Savannah, and Beasley, Allen, Crow, Methvin, Portis & Miles in Montgomery and Atlanta.
Carr said when the suit was filed: "We are bringing this lawsuit quite simply to seek justice for the citizens of Georgia. It is imperative that we recover for the widespread damage that has been caused by this epidemic."
Carr said in announcing the legal team last year that he would dedicate "every available resource our office has to fight the opioid epidemic—whether by increasing communication and coordination through our Statewide Opioid Task Force, cracking down on illegal prescribing through our Medicaid Fraud Control Unit or conducting training opportunities for law enforcement and prosecutors through our national partnerships."
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