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."
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All5-Year Litigation Against Metro Atlanta Pharmacy Headed for Trial After Interlocutory Appeal Denied
Opioid Defendant Motions to Disqualify Motley Rice Over Alleged Ethical Concerns
5 minute readAbortion Rights Set to Return to Supreme Court With Mifepristone Case
Opioid Special Master Who Hit 'Reply All' Protected by Judicial Deliberative Privilege, Judge Rules
5 minute readTrending Stories
- 1Infant Formula Judge Sanctions Kirkland's Jim Hurst: 'Overtly Crossed the Lines'
- 2Trump's Return to the White House: The Legal Industry Reacts
- 3Election 2024: Nationwide Judicial Races and Ballot Measures to Watch
- 4Climate Disputes, International Arbitration, and State Court Limitations for Global Issues
- 5Judicial Face-Off: Navigating the Ethical and Efficient Use of AI in Legal Practice [CLE Pending]
- 6How Much Does the Frequency of Retirement Withdrawals Matter?
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.