The defendants named in the City of Jacksonville’s opioid lawsuit are well-versed in the litigation process, particularly when it comes to settling matters instead of appearing in court.
Jacksonville sued opioid manufacturers, pharmaceutical distribution and sales companies and former executives of the companies.
Since 2007, the defendants have agreed to plea agreements for similar opioid-related damage claims and criminal charges brought by numerous jurisdictions totaling more than $1.2 billion.
Those figures are included in the 144-page complaint for damages and injunctive relief filed in the 4th Judicial Circuit by the city against Perdue Pharma LLP and 24 other defendants.
The complaint alleges that the defendants engaged in a systematic plan to deceive doctors and patients about the products’ efficacy in the management of chronic pain and the addictive nature of their products.
Perdue leads the list with the earliest – and largest – settlement cited in the complaint.
In 2007, the company and three of its top executives were indicted in federal court in Virginia and pled guilty to fraud in promoting OxyContin as an appropriate and nonaddictive treatment for chronic pain that was less subject to abuse than other pain medications.
Under the plea agreement, Perdue agreed to pay $600 million in criminal and civil penalties. In addition, the company’s chief executive officer, general counsel and chief medical officer pled guilty and agreed to pay a total of $34.5 million in penalties.
Defendant Cephalon was charged by the U.S. Attorney in the Eastern District of Pennsylvania with selling its product, Actiq, for uses other than those approved by the Food and Drug Administration.
Actiq is a fentanyl drug in the form of a lozenge that was intended only for cancer patients who had developed a tolerance for morphine-based painkillers.
Cephalon was charged with promoting and selling the drug to doctors who were not oncologists but instead treated noncancer patients with conditions such as anticipation of changing wound dressings, injuries and migraines.
In 2008, the company agreed to pay $50 million to settle the off-label marketing charges. In a separate civil agreement, Cephalon also agreed to pay more than $375 million to resolve charges that it violated the federal Controlled Substances Act related to the off-label selling.
Endo Health Solutions Inc. and Endo Pharmaceuticals Inc. entered into a settlement in 2016 with the New York Attorney General over how the companies marketed and sold the opioid Opana ER.
The complaint alleged that the companies provided training materials to its sales representatives stating that addiction to opioids was not common and that “symptoms of withdrawal do not indicate addiction,”
As part of the settlement, Endo paid a $200,000 penalty and agreed to stop making such claims about its product and about opioids in general.
McKesson Corp., Cardinal Health Inc. and Amerisource Bergen Drug Corp., distributors of opioids, were investigated by the Drug Enforcement Administration.
The companies were found to have failed to operate in good faith mandatory internal oversight programs; failed to report suspicious orders to the DEA; and failed to halt shipment of “suspicious orders” for controlled substances.
McKesson agreed to pay a $150 million fine to the U.S. Department of Justice.
Cardinal agreed to pay a $34 million fine related to the DEA investigation as well as $20 million to settle a lawsuit based on similar charges brought by the State of West Virginia. Amerisource Bergen also agreed to pay West Virginia $16 million for settlement of the same litigation.
The city’s complaint was filed Feb. 27 by Assistant General Counsels Jon Phillips and Tiffany Douglas Safi.
Retained as outside counsel for the litigation is New York City-based Scott + Scott Attorneys at Law LLP, which is representing numerous other municipalities that have filed similar complaints against the same defendants.
Under the terms of an engagement agreement, the law firm would receive 15 percent of the net recovery if the case is settled before trial; 20 percent if the case proceeds through trial and appeal.