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PURDUE PHARMA, L.P., a Delaware Limited Partnership, PURDUE PHARMA INC., a New York Corporation, and RICHARD SACKLER, M.D

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PURDUE PHARMA, L.P., a Delaware Limited Partnership, PURDUE PHARMA INC., a New York Corporation, and RICHARD SACKLER, M.D IN THE CIRCUIT COURT OF BOONE COUNTY, WEST VIRGINIA STATE OF WEST VIRGINIA ex rel. PATRICK MORRISEY, Attorney General, Plaintiff, v. CIVIL ACTION NO. JUDGE PURDUE PHARMA, L.P., a Delaware limited partnership, PURDUE PHARMA INC., a New York corporation, and RICHARD SACKLER, M.D. Defendants. COMPLAINT This action is brought in the name of the State of West Virginia in its sovereign capacity by Patrick Morrisey, Attorney General, pursuant to W. Va. Code § 46A-7-108 of the West Virginia Consumer Credit and Protection Act, W. Va. Code § 46A- 1-101 et seq. ("WVCCPA"), against Purdue Pharma L.P., Purdue Pharma Inc., and Richard Sackler, M.D., to protect consumers and the integrity of the commercial marketplace in West Virginia. This action is brought against Richard Sackler individually and as a director on the Board of Purdue Pharma, Inc. The State also brings suit pursuant to the Attorney General's common law police power to abate and remedy the statewide public nuisance created by the Defendants' interference with the commercial marketplace and endangerment of the public health. BACKGROUND 1. In June 2001, the State of West Virginia, the Bureau of Employment Programs, West Virginia Department of Health and Human Services and the West Virginia Public Employees Insurance Agency sued Purdue Pharma L.P., Purdue Pharma Inc., and Purdue Frederick Company in the Circuit Court of McDowell County, West Virginia, Civil Action No. 01-C-137-S, for violations of the WVCCPA, in connection with the sale and marketing of OxyContin®. The parties entered into a settlement agreement that was approved by Final Order dated December 22, 2004 ("2004 Settlement"). In the settlement agreement, the State agreed to "absolutely, unconditionally, and irrevocably release, remise, acquit, and forever discharge Purdue ... of and from any and all claims of whatsoever kind or nature relating to, whether now arisen or hereafter to arise, that were asserted or which could have been asserted in [Civil Action No. 01-C-137-S]." 2. In 2010, Purdue Pharma, L.P. removed the OxyContin® Tablets which were the subject of the 2004 settlement from the market. On August 8, 2010, it introduced and began marketing a new reformulated oxycodone time-released tablet that it also labeled OxyContin. See https://ndclist.com/ndc/590 1 1 -460. Purdue also registered a new NDC (National Drug Code) for this reformulated medication. The OxyContin® Tablets that were the subject of the 2004 settlement had NDCs 5901 1-0100, -0103, -105, -107. The number 5901 1 identifies the "labeler" of the drug, meaning the manufacturer, repackager, or distributer. The second number identifies the product — OxyContin® Tablets. In 2010, Purdue registered its reformulated Oxycontin product as new to the market under an "approved new drug application." This new Oxycontin was assigned NDCs for each strength of this new drug. For example, 5901 1-490 is the NDC for the 2010 Oxycontin 80 mg tablet. See https://www.accessdata.fda.gov/scripts. The OxyContin® Tablets which were the subject of the 2004 settlement are no longer manufactured. Therefore, the State does not violate the 2004 Settlement by bringing this action against the Defendants for its violations of state law in its marketing and sale of this new drug, in addition to its other opioid pain medications. 2 3. The Attorney General has been thoroughly investigating Purdue Pharma for several years and this lawsuit reveals a number of the findings from his office's investigation. I. GENERAL FACTUAL ALLEGATIONS 4. Opioids are synthetic or semi-synthetic drugs derived from opium. Historically, opioids were prescribed in limited circumstances due to long-standing and well-founded fears about their addictive potential and safety. Then came Purdue. 1 Purdue created a false narrative to reverse these attitudes among public health care providers and other stakeholders in order to increase sales of its opioid products and its own market share. 5. Purdue violated the WVCCPA by making a series of misleading safety, comparative, and benefit claims about its opioid products and unfairly targeting vulnerable populations such as the elderly. Purdue advanced the deceptive narrative that its opioid products were safer than they actually were, its competitors' products were more dangerous or less effective than they actually were, its opioid products had certain qualities or benefits for which it lacked adequate substantiation, and its opioid products were safer for elderly patients than they actually were. 6. Purdue's actions and omissions concerning its highly addictive narcotics have helped create and fuel a public nuisance in West Virginia by significantly interfering with the commercial marketplace and endangering the life and health of the state's residents. PARTIES 7. The Plaintiff, the State of West Virginia ex rel. Patrick Morrisey, Attorney General, is charged with enforcing the WVCCPA. Pursuant to W. Va. Code § 46A-7-108, the Attorney i Unless otherwise stated, the term "Purdue" shall mean and include Purdue Pharma L.P. Purdue Pharma Inc. and Richard Sackler, M.D. 3 General is authorized to bring a civil action for violations of the WVCCPA and for other appropriate relief. The Attorney General has all common law powers except as restricted by statute or court decision. Syl. pt. 3, State ex rel. Discover Financial Services, Inc., et al. v. Nibert, 744 S.E.2d 625, 231 W. Va. 227 (2013). 8. Defendant Purdue Pharma L.P. is a limited partnership organized under the laws of Delaware with its principal place of business in Connecticut. 9. Defendant Purdue Pharma Inc. is a privately owned company incorporated in New York with its principal place of business in Connecticut. 10. Defendant Purdue Pharma Inc. is the general partner of Purdue Pharma L.P. 11. Defendant Richard Sackler, M.D. is a former officer and member of the board of directors of Purdue Pharma, Inc. where he was intimately involved in directing the operation of the company including making decisions as to the sales and marketing practices of Purdue Pharma, L.P. 1 2. This Court has jurisdiction over the Defendants for the reasons set forth below. STATE COURT JURISDICTION 13. The causes of action asserted and the remedies sought in this Complaint are based exclusively on West Virginia statutory, common, or decisional law. 14. This Complaint does not confer diversity jurisdiction upon federal courts pursuant to 28 U.S.C. § 1332, as the State is not a citizen of any state and this action is not subject to the jurisdictional provisions of the Class Action Fairness Act of 2005, 28 U.S.C. § 1332(d). Federal question subject matter jurisdiction under 28 U.S.C. § 1331 is not invoked by this Complaint. Nowhere does the State plead, expressly or implicitly, any cause of action or request any remedy that arises under federal law. The issues presented in the allegations of this Complaint do not 4 implicate any substantial federal issues and do not turn on the necessary interpretation of federal law. There is no federal issue important to the federal system as a whole as set forth in Gunn v. Minton, 568 U.S. 251, 258 (2013). 15. In this Complaint, the State occasionally references federal statutes, regulations, or actions, but does so only to establish the Defendants' knowledge or to explain how the Defendants' conduct has not been approved by federal regulatory agencies. JURISDICTION 16. As a court of general jurisdiction, the circuit court is authorized to hear this matter based on the WVCCPA and nuisance claims, the amount at issue, and the relief sought pursuant to W. Va. Code § 56-3-33(a). VENUE 17. Venue is proper in Boone County pursuant to W. Va. Code § 46A-7-1 14. TIME PERIOD 1 8. This enforcement action concerns violations of law from the date a particular opioid was introduced to the market. In the case of OxyContin, this action concerns violations that occurred after August 8, 2010, the date the reformulated drug was introduced to the market. References in the Complaint to conduct that occurred before this date are mentioned to establish Purdue's knowledge, a pattern of behavior, other facts that are relevant to conduct occurring after the 2004 Settlement, or other opioids sold and marketed by Purdue. 5 APPLICABLE LAW 19. West Virginia Code § 46A-6-102(6) defines "trade" or "commerce" to mean "the advertising, offering for sale, sale or distribution of any goods or services and shall include any trade or commerce, directly or indirectly, affecting the people of this state." (Emphasis added.) 20. West Virginia Code § 46A-6- 1 04 provides that "unfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful." (Emphasis added.) 21. West Virginia Code § 46A-6- 102(7) defines unfair methods of competition and unfair or deceptive acts or practices to mean and include, but not be limited to: (E) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits or quantities that they do not have .... * * * (L) Engaging in any other conduct which similarly creates a likelihood of confusion or of misunderstanding; (M) The act, use or employment by any person of any deception, . false pretense, false promise or misrepresentation, or the concealment, suppression or omission of any material fact with the intent that others rely upon such concealment, suppression or omission, in connection with sale or advertisement of any goods or services, whether or not any person has in fact been misled, deceived or damaged thereby. W. Va. Code § § 46A-6-102(7)(E), (L), and (M). II. SPECIFIC FACTUAL ALLEGATIONS Purdue's Opioid Products 22. Purdue owns and manufactures several different extended release opioid products that it marketed in West Virginia.
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