Indiana’s lawsuit against opioid maker Purdue Pharma proceeds

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Indiana’s lawsuit against drug maker Purdue Pharma for the company’s alleged role in contributing to the state’s opioid crisis is moving forward after surviving a motion to dismiss.

Marion Superior Judge Heather Welch denied the motion in an Aug. 12 order and let all the claims brought by the state stand. Indiana alleges Purdue violated the state’s Deceptive Consumer Sales Act, the Prescription Drug Discount and Benefit Cards Statute, the False Claims Act and the Medicaid False Claims Act.

In addition, the trial court ruled Indiana may seek disgorgement damages under the Deceptive Consumer Sales Act.

Purdue argued Indiana was not eligible for such restitution because the state was not the actual consumer allegedly deceived and was not subject to the resulting harm. Indiana countered that although the statute lacks specific reference to disgorgement, the court could still exercise its authority to award damages to carry out the effect of the laws even when the statute is silent on a particular remedy.

The court agreed with the state, finding the judiciary is “vested with the authority to issue judgments intended to carry out the intent of statutes… .”

Indiana Attorney General Curtis Hill hailed the decision.

“We remain steadfast in our belief that Purdue Pharma must answer for its violations of Indiana Law,” Hill said in a statement. “Any company that engages in unfair abusive and deceptive practices in Indiana must be held accountable for such misconduct.”

Indiana filed the lawsuit, State of Indiana v. Purdue Pharma L.P., et al., 49D01-1811-PL-045447, on Nov. 14, 2018. The state is seeking maximum penalties, treble damages, costs and a permanent injunction enjoining Purdue from engaging in the deceptive, unfair and abusive acts described in the complaint.

In its lawsuit, the state alleges the pharmaceutical giant minimized or denied the risk of addiction, exaggerated the benefits of opioids, targeted specific consumers and failed to disclose the dangers of taking higher doses of opioids.

Cohen Milstein Sellers & Toll PLLC in Washington, D.C., and Zimmerman Reed LLP in Minnesota are helping the state with the legal action.

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