FOR IMMEDIATE RELEASE
January 30, 2019
UTAH ESCALATES LEGAL ACTION AGAINST PURDUE PHARMA BY NAMING EXECUTIVES AND EXPEDITING STATE’S CLAIMS
State seeks administrative relief for misleading marketing practices by OxyContin producer
SALT LAKE CITY – Today, the Utah Attorney General’s Office filed an
administrative action against Purdue Pharma L.P., Purdue Pharma Inc., The
Purdue Frederick Company, Richard Sackler, M.D., and Kathe Sackler, M.D., as
part of the State’s efforts to hold accountable the opioid companies and
individuals that created and fueled the opioid epidemic throughout Utah.
In the filing, under Utah Code § 13-2-6, the Division of Consumer Protection of
the Department of Commerce issued an administrative action, in the form of a
citation, against the defendants alleging violations of the Utah Consumer Sales
Practices Act. An administrative proceeding allows the State to seek to prove
its claims and obtain a judgment, injunctive relief, and civil penalties more
promptly than state district court proceedings.
Based on evidence that has emerged over the last year, this administrative
action alleges that not only Purdue, but two of its owners, Richard and Kathe
Sackler, participated in Purdue’s fraudulent conduct.
“We are committed to achieving the best results for the State of Utah and
pursuing all legal avenues appropriate to hold the companies and individuals
that created this crisis accountable,” said Utah Attorney General Sean Reyes.
“After seeing multiple media reports about Purdue retaining restructuring
counsel, we decided that filing an administrative action is in the best
interest of the people of Utah. This action allows us to expedite legal
proceedings against Purdue and the named executives, who we allege incited and
participated in the deceptive sales and marketing tactics that ultimately led
to an epidemic of prescription opioid abuse in our state.”
“The administrative process, which the Division of Consumer Protection
regularly uses, will provide prompt and full consideration of the State’s
claims,” added AG Reyes. “Our families, health care professionals, first
responders, and law enforcement officers know the urgency of the opioid
epidemic. As we recognized when we filed suit, and in the several months since
then, we don’t have more time to lose. Meanwhile, we are continuing to
investigate other potential wrongdoers.”
Concurrent with this action, the state dismissed without prejudice the civil
litigation it filed against Purdue Pharma in Carbon County last May, which
means the State may refile against Purdue Pharma for the same circumstance at a
later day. This action will not preclude Utah from filing lawsuits in district
court against other defendants.
In addition to today’s actions, Utah continues to participate in investigations
against other entities. Attorney General Reyes and a bipartisan group of more
than 40 other state attorneys general have been aggressively investigating the
extent to which entire opioid industry – manufacturers, distributors and
pharmacies – engaged in unlawful practices. Purdue Pharma alone faces hundreds
of lawsuits by government entities while other investigations remain ongoing.
The State of Utah continues to investigate further lawsuits against additional
defendants.
In Utah, non-fatal opioid costs to the state are approximately $524 million
annually, according to research from the American Enterprise Institute. From 2013 to
2015, Utah ranked 7th highest in the nation for drug overdose deaths.
In May 2018, Attorney General Sean Reyes said, “Purdue Pharma manufactured one
of the deadliest combinations in the history of our nation—OxyContin and lies.
That lethal cocktail has led to a national public health crisis of epic
proportions…. While Purdue’s executives got rich, Utah was plunged into a
national public health crisis.”
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NOTES:
1. A legal briefing on background concerning this matter will be held at 1:30pm and 2:30pm today in the Utah Attorney General’s Office. Call Chief of Staff Ric Cantrell at 801-230-9890 for more information.
2. You can review a copy of the administrative action here. The large number of redactions in the document are information subject to a protective order in multi-district litigation which is ongoing in the United State District Court for the Northern District of Ohio. https://attorneygeneral.utah.gov/wp-content/uploads/2019/01/Utah-Admin-Citation-1-30-2019.pdf
3. These administrative claims are not dependent on other counties’ or states’ lawsuits and will proceed immediately while the district court claims have been stayed. Complex civil litigation takes years. The administrative claims should be adjudicated within 6 months.
