Ohio AG Clears Hurdle With Key Decision in Opioid Litigation
A judge has allowed the state of Ohio's case to go forward against several opioid manufacturers in a ruling that plaintiffs lawyers are citing in…
August 30, 2018 at 07:19 PM
6 minute read
A judge has allowed the state of Ohio's case to go forward against several opioid manufacturers in a ruling that plaintiffs lawyers are citing in other cases brought over the epidemic.
Already, lead plaintiffs attorneys in the federal multidistrict litigation over opioids have cited the Aug. 22 decision by Ross County Court of Common Pleas Judge Scott Nusbaum. The citations have come in cases brought by one state, six counties and a hospital—all of whom a federal judge in the MDL handpicked to move forward on discovery. Those plaintiffs are opposing pending motions to dismiss by manufacturers and distributors of opioids.
The Ohio judge rejected motions filed by several manufacturers to dismiss claims such as public nuisance, fraud and racketeering.
“The plaintiff's complaint adequately identifies the defendants and their actions and representations,” Nusbaum wrote. “The complaint contains over 40 pages which explain in detail the marketing tactics utilized by defendants, their representatives, and various groups connected to defendants. Similarly, the complaint adequately sets forth the representations made, how these representations were distributed to physicians and citizens of Ohio, that the representations were false and that the defendants knew the falsity of the representations.”
The Ohio ruling is among a handful of dismissal orders in the growing opioid litigation. In June, Suffolk County Supreme Court Judge Jerry Garguilo refused to dismiss claims by several New York counties against opioid manufacturers, then ruled against the distributors last month. Superior Court Court Judge Dani Crosby in Anchorage refused to dismiss the state of Alaska's case against manufacturer Purdue Pharma last month.
“It is yet another loss for the opioid defendants that raises a serious question: Why is money being spent on defense lawyers making doomed motions rather than to help the governments left holding the bag for the devastating effects of these same companies' misconduct?” Paul Hanly, of Simmons Hanly Conroy, wrote in an email. Hanly is a co-lead counsel in the MDL over opioids.
Dan Tierney, a spokesman for Ohio Attorney General Mike DeWine, said in a statement: “The Ohio Attorney General's Office is pleased this case is proceeding and moving forward with discovery.”
Bob Josephson, a spokesman for Purdue Pharma, one of the defendants, said: “While we are disappointed that the claims were not dismissed at this stage, it is important to note that this is not a ruling on the merits of the case. We vigorously deny the state's allegations and we look forward to the opportunity to present our substantial defenses.”
And Johnson & Johnson wrote: “Our actions in the marketing and promotion of these medicines were appropriate and responsible. The labels for our prescription opioid pain medicines provide information about their risks and benefits, and the allegations made against our company are baseless and unsubstantiated.”
Spokespeople for the other defendants—Endo Health Solutions, Teva Pharmaceuticals Industries and Allergan—did not respond or declined to comment.
The ruling could be influential in the MDL, which involves cases brought primarily by cities, counties, Native American tribes and hospitals. Judge Dan Polster of the U.S. District Court for the Northern District of Ohio, who sits in Cleveland, is overseeing all the cases.
Although Polster has focused his efforts on reaching a global settlement, he has allowed some discovery to go forward as to a limited number of cases, with a potential trial set for late next year. One of those cases involves the city of Akron and Summit County in Ohio.
Both of those plaintiffs—along with West Virginia's Cabell County, Michigan's Monroe County and Florida's Broward County, and the city of Chicago—filed an Aug. 24 notice of the Ohio ruling in support of their oppositions to dismiss their cases.
Alabama Attorney General Steve Marshall, in the only state's case in the MDL, cited the decision on Wednesday. His office and Beasley, Allen, Crow, Methvin, Portis & Miles, which filed the notice, did not respond to requests for comment.
Then, on Thursday, the West Boca Medical Center Inc., a hospital in Florida, filed a notice. The hospital's attorney, Don Barrett of Barrett Law Group in Lexington, Mississippi, did not respond to a request for comment.
The state of Ohio filed its case against the manufacturers in 2017. Hagens Berman Sobol Shapiro's Steve Berman in Seattle and Mike Moore of the Mike Moore Law Firm in Flowood, Mississippi, both veterans of the tobacco litigation, are representing the state of Ohio in the case.
In this month's ruling, Nusbaum refused to dismiss any of the claims. The notices in the MDL referenced his decision on preemption and his refusal to dismiss public nuisance claims or claims under the Ohio's Corrupt Practices Act, the state's racketeering statute.
As to preemption, which defendants insist applies because of U.S. Food and Drug Administration approved opioids, Nusbaum found that “drug labeling does not preclude fraud claims.”
He also found that the state of Ohio had alleged mail, wire and telecommunications fraud in support of Ohio's Corrupt Practices Act as part of a complaint that “sets forth the defendants' intent in committing various criminal acts.”
On the public nuisance claim, Nusbaum cited a 2002 decision by the Ohio Supreme Court in a case brought by the city of Cincinnati against several gun manufacturers. The judge said that ruling, in City of Cincinnati v. Beretta USA, which allowed the case to go forward, “adopted a broader definition of public nuisance.”
Citing that same decision, Nusbaum also held that, at this stage in the case, “it is not necessary” for the state of Ohio to identify specific physicians who relied on alleged misrepresentations made by the defendants in order to pursue fraud claims.
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
© 2025 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 AllFTC Launches Inquiry of Single-Family Rental Home 'Mega Investors,' Issues PBM Report
5 minute read'Nuclear Option'?: Eli Lilly Taps Big Law Firms in Federal Drug Pricing Dispute
3 minute readBaltimore City Govt., After Winning Opioid Jury Trial, Preparing to Demand an Additional $11B for Abatement Costs
3 minute readTrending Stories
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250