Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Five more U.S. states sue OxyContin maker Purdue Pharma over opioid epidemic

Published 05/16/2019, 01:10 PM
© Reuters. FILE PHOTO: Bottles of prescription painkiller OxyContin, 40mg, 20mg and 15mg pills, made by Purdue Pharma L.D. sit on a counter at a local pharmacy in Provo
CAH
-
MCK
-
COR
-

By Jonathan Stempel

(Reuters) - Five U.S. states on Thursday filed lawsuits accusing Purdue Pharma LP of illegally marketing and selling opioids, escalating the wave of litigation over a nationwide abuse epidemic.

Iowa, Kansas, Maryland, West Virginia and Wisconsin joined 39 states to file lawsuits targeting Purdue Pharma and its leaders, including former president Richard Sackler and his family.

Officials accused Purdue Pharma of repeatedly making false and deceptive claims that opioids, including OxyContin, were safe for a wide range of patients seeking to reduce pain.

"This is a bipartisan effort," Iowa Attorney General Tom Miller, a Democrat, said on a conference call.

The lawsuits were announced six days after a North Dakota judge dismissed that state's lawsuit accusing Purdue Pharma of overstating the benefits and trivializing the addiction risks of prolonged opioid use. North Dakota is expected to appeal.

Purdue Pharma called the new lawsuits "misleading attacks," and said it will defend itself against them.

"These complaints are part of a continuing effort to try these cases in the court of public opinion rather than the justice system," the Stamford, Connecticut-based company said.

Opioids, including prescription painkillers and heroin, played a role in a record 47,600 U.S. overdose deaths in 2017, the U.S. Centers for Disease Control and Prevention has said.

State and local governments have filed hundreds of lawsuits accusing drugmakers such as Purdue Pharma of deceptive marketing, and distributors such as AmerisourceBergen (NYSE:ABC) Corp, Cardinal Health Inc (NYSE:CAH) and McKesson Corp (NYSE:MCK) of ignoring how opioids were being used illegally.

Oklahoma reached a $270 million settlement with Purdue Pharma and the Sacklers on March 26.

The prospect that Purdue Pharma might eventually seek bankruptcy protection is a reason that Sackler family members have been named as defendants in some lawsuits.

On the conference call, Maryland Attorney General Brian Frosh said the family has "left a trail of addiction and death."

In the North Dakota case, Bismarck-based Judge James Hill rejected the state's argument that Purdue Pharma's conduct created a public nuisance.

"Purdue cannot control how doctors prescribe its products and it certainly cannot control how individual patients use and respond to its products, regardless of any warning or instruction Purdue may give," Hill wrote.

The Sacklers have long been prolific cultural benefactors, but their alleged role in the opioid crisis has led some major museums to distance themselves.

© Reuters. FILE PHOTO: Bottles of prescription painkiller OxyContin, 40mg, 20mg and 15mg pills, made by Purdue Pharma L.D. sit on a counter at a local pharmacy in Provo

On Wednesday, New York's Metropolitan Museum of Art, whose Sackler Wing contains the popular Temple of Dendur, said it would stop accepting donations from the Sacklers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.