AG Balderas Files Lawsuit Against Purdue Pharma's Sackler Family for Fueling Opioid Crisis

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AG Balderas Files Lawsuit Against Purdue Pharma's Sackler Family for Fueling Opioid Crisis For Immediate Release: September 10, 2019 Contact: Matt Baca (505) 270-748 AG Balderas Files Lawsuit Against Purdue Pharma's Sackler Family for Fueling Opioid Crisis Albuquerque, NM---Today, Attorney General Balderas took yet another step in holding accountable those responsible for New Mexico's opioid epidemic. In a lawsuit filed today, Attorney General Balderas brought action against the Sackler family for masterminding illegal and deceptive practices which caused millions of pills to come flooding into New Mexico. These eight members of the billionaire Sackler Family have owned and controlled Purdue for decades. Until recently, the Sacklers controlled a majority of the seats on the company's board and used the company to execute illegal and deadly schemes which helped lead New Mexico and the rest of the nation into the epidemic we are currently facing, all the while paying themselves billions. "The Sacklers are perhaps the most deadly drug dealers in the world. Because of their illegal actions, New Mexico faces some of the highest opioid related death numbers in the nation, and we have whole communities here in New Mexico which will never be the same again,” said Attorney General Balderas. "Today I am seeking to hold them accountable and to help end New Mexico's crisis and avoid more lives being lost." The Sacklers and Purdue designed their operations to pull the wool over the eyes of the public, state and federal regulators, and many doctors. They wrote the book on how to market narcotics directly to doctors and to the public-- convincing everyone through a decades-long misinformation campaign that pain was being under-treated, and that chronic, long-lasting pain of all sorts should be aggressively treated with their powerful opioid, oxycontin. Purdue is not a publicly traded corporation and it has no other shareholders besides the family, who regularly voted to pay themselves billions from the company, then filtered company profits through a maze of trusts, offshore holding companies and foreign banks. Since 2007, the Sacklers have taken billions out of the company, making themselves rich at the expense of New Mexican lives. A copy of the complaint is attached. ### FIRST JUDICIAL DISTRICT COURT COUNTY OF SANTA FE STATE OF NEW MEXICO STATE OF NEW MEXICO, EX REL., § HECTOR BALDERAS, ATTORNEY § GENERAL, § § NO. _______________________ Plaintiff, § § vs. § § RICHARD S. SACKLER, BEVERLY § SACKLER, DAVID A. SACKLER, ILENE § SACKLER LEFCOURT, JONATHAN D. § SACKLER, KATHE SACKLER, § MORTIMER D. A. SACKLER, AND § THERESA SACKLER, § § Defendants. § PLAINTIFF’S COMPLAINT TABLE OF CONTENTS I. INTRODUCTION ...............................................................................................................1 II. PARTIES ...........................................................................................................................10 A. Plaintiff ..................................................................................................................10 B. Defendants .............................................................................................................10 III. JURISDICTION AND VENUE ........................................................................................13 IV. FACTUAL BACKGROUND ............................................................................................14 A. Purdue and the Sacklers used multiple avenues to disseminate its unfair and deceptive statements about the use of opioids for chronic pain.............................16 1. Purdue spread its unfair and deceptive statements through direct marketing of its brand opioids. ..................................................................17 2. Purdue and the Sacklers used a diverse group of seemingly independent third parties to spread unfair and deceptive statements about the risks and benefits of using opioids for chronic pain. ..........................................19 B. Purdue and the Sacklers misrepresented the risks and benefits of using opioids for chronic pain. .....................................................................................................22 1. Purdue and the Sacklers falsely trivialized or failed to disclose the known risks of long-term opioid use. ........................................................23 2. Purdue and the Sacklers grossly overstated the benefits of chronic opioid therapy. ...........................................................................................29 3. Purdue and the Sacklers also engaged in other unfair conduct. .................31 C. Purdue and the Sacklers targeted susceptible prescribers and vulnerable patient populations. ............................................................................................................32 D. The Sacklers directed and led Purdue’s misconduct..............................................33 1. The Sacklers’ misconduct leading to the 2007 judgment ..........................34 2. The Sacklers’ misconduct from 2007 until today ......................................40 E. Although they knew their conduct was deceptive and unfair, the Sacklers fraudulently concealed their conduct. ..................................................................124 COUNT I – VIOLATION OF NEW MEXICO UNFAIR PRACTICES ACT (NMSA 1978, §§ 57-12-1 TO -26) .................................................................................125 RELIEF ........................................................................................................................................130 i COMPLAINT Plaintiff, the State of New Mexico, by Hector Balderas, Attorney General (the “State”), brings this Complaint against Defendants Richard S. Sackler, Beverly Sackler, David A. Sackler, Ilene Sackler Lefcourt, Jonathan D. Sackler, Kathe Sackler, Mortimer D.A. Sackler, and Theresa Sackler (collectively, the “Sacklers” or “Defendants”) and alleges, upon information and belief, as follows: I. INTRODUCTION 1. The State of New Mexico brings this civil enforcement action seeking civil penalties and other relief for Defendants’ unfair and deceptive marketing of prescription opioids (hereinafter “opioids”).1 2. This nation is facing an unprecedented opioid addiction epidemic that was initiated and perpetuated by the Sacklers for their own financial gain, to the detriment the State and its residents. The “Sacklers” include Richard Sackler, Beverly Sackler, David Sackler, Ilene Sackler Lefcourt, Jonathan Sackler, Kathe Sackler, Mortimer Sackler, and Theresa Sackler. The Sacklers engaged in unfair and deceptive marketing of prescription opioids as safe and non-addictive through their closely held companies including: Purdue Pharma L.P., the Purdue Frederick Company, Purdue Pharmaceutical Products L.P. and Purdue Products L.P. (collectively “Purdue”). 3. In 2014, more than 47,000 people died in the United States from lethal drug overdoses. In 2015, that number exceeded 52,000.2 In 2016, it exceeded 63,000 – more than the number of Americans who died during the entirety of the Vietnam War, and more than the number 1 As used herein, the term “opioid” refers to the entire family of opiate drugs including natural, synthetic and semi-synthetic opiates. 2 Overdose Death Rates, National Institute of Drug Abuse, https://www.drugabuse.gov/related- topics/trends-statistics/overdose-death-rates (hereinafter, “Overdose Death Rates”) (last visited Dec. 14, 2018). 1 of Americans who die from breast cancer every year.3 Sadly, this trend shows no sign of slowing. Nationwide, opioids were involved in 47,600 overdose deaths in 2017—a sixfold increase from 1999—according to the latest data from the U.S. Centers for Disease Control and Prevention (“CDC”).4 4. More than three out of five of those deaths involve opioids—a dangerous, highly addictive and often lethal class of natural, synthetic and semi-synthetic painkillers.5 Prescription opioids include brand-name medications like OxyContin, Opana, Subsys, Fentora and Duragesic, as well as generics like oxycodone, hydrocodone and fentanyl. 5. That number does not take into account the staggering number of additional illicit opioid deaths that can be related back to prescribed opioids. Four out of five new heroin users began first with prescription opioid misuse.6 It is thus unsurprising that heroin overdose deaths increased in lockstep with those attributed to prescription opioids; the Centers for Disease Control found a fivefold increase in the heroin death rate between 2002 and 2014.7 According to an article published in the New England Journal of Medicine, two studies found that almost 80% of heroin 3 Vietnam War U.S. Military Fatal Casualty Statistics, National Archives, https://www.archives.gov/ research/military/vietnam-war/casualty-statistics.html (last visited Dec. 14, 2018); Rose A. Rudd et al., Increases in Drug and Opioid Involved Overdose Deaths – United States, 2010-2015, 65 Morbidity & Mortality Weekly Report 1445-52 (2016), https://www.cdc.gov/mmwr/volumes/65/wr/mm655051e1.htm (hereinafter, “Rudd, Increases in Drug and Opioid Involved Overdose”); Nadia Kounang, Opioids now kill more people than breast cancer, CNN (Dec. 21, 2017), https://www.cnn.com/2017/12/21/health/drug-overdoses-2016-final- numbers/index.html. 4 See https://www.drugabuse.gov/related-topics/trends-statistics/overdose-death-rates 5 And nearly half of those involve legal opioids prescribed by doctors to treat pain. 6 Christopher M. Jones, Heroin use and heroin use risk behaviors among nonmedical users of prescription opioid
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