Purdue, state oppose firm’s involvement in N.Y. trial

Coalition of states worries that including OxyContin maker would undermine negotiations

STAMFORD — In a rare instance of agreement, bankrupt OxyContin maker Purdue Pharma and a 24-state coalition are fighting a proposal by group of other pharmaceutical giants to involve Purdue in an upcoming trial in New York, arguing that such a move would undermine settlement negotiations and help those defendants avoid accountability for their alleged role in fueling the opioid crisis.

Purdue and the Sackler family members who own the company would have been defendants in the New York trial, but that state responded to

Purdue’s bankruptcy filing last September by voluntarily “standing down” in its litigation against the company and its owners. But the other firms named in the New

York case have asked the bankruptcy court to allow Purdue to be listed on the verdict form in their trial, so that they do not face undue liability.

The trial was scheduled to start March 20, but it has been delayed because of the coronavirus crisis. Defendants include Allergan Finance, AmerisourceBergen Drug Corp.,

Johnson & Johnson,

Janssen Pharmaceuticals, Cephalon, Teva Pharmaceuticals USA, Actavis Pharma, CVS Pharmacy, Cardinal Health, Walmart, McKesson Corp., Walgreen Co., and Rite Aid of Maryland and New York.

In a filing this week, Purdue lambasted the defendants’ request. It said apportioning fault to Purdue in the New York case would contravene the bankruptcy court order that has halted pending litigation against Purdue and have a “devastating effect” on settlement discussions.

In their own filing this week, Connecticut and the 23 other states that have not agreed to settlement terms with Purdue also registered their opposition.

“As the states have said before, holding Purdue accountable is one of the top priorities in state law enforcement,” the states said. “But the other companies’ motion is about avoiding accountability. They seek a trial where their responsibility could be taken away based on

“I am on the phone nearly every day with attorneys general from across the country regarding our ongoing opioid litigation. That was the case before the pandemic and is the case today.” Connecticut Attorney General William Tong

Purdue’s fault even though Purdue would not be a defendant and the judgment would have no legal effect on Purdue.”

The states said they were also concerned about the precedent that might be set by involving Purdue.

“Lawsuits pending across the nation allege that opioid companies broke the law and caused many Americans to suffer and die,” the states’ filing reads. “If opioid companies were permitted to try to ‘apportion fault’ to Purdue in their non-bankruptcy litigation, defendants throughout the country would maneuver to escape their own accountability by asking judges and juries to assign fault to a non-present Purdue.”

Johnson & Johnson has already faced legal punishment. Last year, an Oklahoma judge ordered the

company to pay $572 million to the state after he found the company had fraudulently marketed its opioids. J&J contested the ruling, and the penalty was later reduced to $465 million.

In March 2019, Purdue settled with Oklahoma for approximately $270 million.

Today, Purdue and its creditors are still trying to reach a settlement of the approximately 3,000 lawsuits that allege Purdue fueled the national opioid crisis with deceptive OxyContin marketing. The company and the Sacklers have rejected those accusations.

Purdue and the Sacklers have offered a deal that they value at more than $10 billion. In addition, the Sacklers would relinquish control of the company so that it could be turned into a public-benefit trust.

About half of the states that have sued Purdue have accepted those terms. But the non-consenting states have held out because they see the plan as not going far enough to address Purdue’s purported misconduct and not doing enough to tackle the opioid epidemic.

At the same time, Purdue is still soliciting claims from private citizens who might have been harmed by the company’s drugs.

New York’s stay-at-home order has temporarily ruled out case hearings at the federal courthouse in White Plains. Those proceedings are now being conducted through teleconferencing.

“I am on the phone nearly every day with attorneys general from across the country regarding our ongoing opioid litigation,” Connecticut Attorney General William Tong said last week. “That was the case before the pandemic and is the case today.”