DePriest v. Astrazeneca Pharmaceuticals, L.P.

2009 Ark. 547, 351 S.W.3d 168, 2009 Ark. LEXIS 722
CourtSupreme Court of Arkansas
DecidedNovember 5, 2009
Docket08-1257
StatusPublished
Cited by22 cases

This text of 2009 Ark. 547 (DePriest v. Astrazeneca Pharmaceuticals, L.P.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DePriest v. Astrazeneca Pharmaceuticals, L.P., 2009 Ark. 547, 351 S.W.3d 168, 2009 Ark. LEXIS 722 (Ark. 2009).

Opinion

ELANA CUNNINGHAM WILLS, Justice.

1, This appeal arises from a lawsuit filed by nine named plaintiffs (hereinafter “Appellants”) against drug manufacturer As-traZeneca Pharmaceuticals, L.P., alleging that AstraZeneca fraudulently marketed its drug Nexium. The Searcy County Circuit Court granted AstraZeneca’s motion to dismiss the Appellants’ complaint on August 7, 2008. We find no error and affirm.

AstraZeneca’s drug Nexium (esomepra-zole) and its predecessor medication, Prilo-sec (omeprazole), are both so-called proton pump inhibitors (PPIs) that are used in the treatment of gastro-esophageal reflux disease (GERD), or heartburn. Prilosec, which had been long ^advertised as “the Purple Pill,” was AstraZeneca’s most profitable drug by the time its patent expired in 2001. 1 Facing the expiration of that patent, AstraZeneca sought approval from the Food and Drug Administration (FDÁ) for a new PPI drug, Nexium. In 2001, the FDA approved AstraZeneca’s request to market Nexium for three GERD-related conditions: the healing of erosive esophag-itis (“EE,” or damage to the lining of the esophagus), maintenance of healing eso-phagitis, and the treatment of symptomatic GERD.

The original plaintiffs — Wanda Hamilton, Eddie Lou Sanders, and Lisa Sanders — filed their initial complaint against AstraZeneca in Searcy County Circuit Court on November 30, 2004, alleging that AstraZeneca’s actions in marketing Nexi-um as a superior product to Prilosec were fraudulent and violated the Arkansas Deceptive Trade Practices Act, Arkansas Code Annotated section 4-88-107 (Repl. 2001). In addition, Appellants raised claims for common-law fraud, breach of contract, promissory estoppel, unjust enrichment, and violations of the Arkansas Unfair Practices Act and Arkansas Medicaid Fraud False Claims Act.

In essence, Appellants alleged that As-traZeneca had falsely marketed Nexium as “new” and “better” than Prilosec, when the two drugs were, in fact, very similar and had similar therapeutic results. Moreover, Appellants contended that As-traZeneca had positioned RNexium as a “new” drug in order to cause purchasers to pay a higher price for it than they had been paying for Prilosec.

Appellants filed first, second, and third amended complaints on December 2, 2004, January 14, 2005, and January 20, 2005, adding and dropping various named plaintiffs and including additional allegations. AstraZeneca removed the action to federal district court on January 21, 2005, but Appellants moved to remand the action, and the federal district court granted that motion on September 21, 2005. On October 11, 2005, AstraZeneca then filed a motion to dismiss the third amended and substituted complaint pursuant to Ark. R. Civ. P. 12(b)(6), contending that Appellants had failed to state a cause of action. The circuit court held a hearing on As-traZeneca’s motion to dismiss Appellants’ third amended complaint on May 15, 2006. Before the court could render a ruling, however, Appellants filed their fourth amended complaint on May 15, 2006. This complaint added five new plaintiffs.

In a letter opinion dated May 24, 2006, and filed on May 31, 2006, the circuit court granted AstraZeneca’s motion to dismiss the third amended complaint. The court noted that

[t]he crux of the plaintiffs’ complaint is not that this new Nexium product is harmful, ineffective, or of poor quality, but rather that it is inappropriately marketed as “new,” when in fact there is nothing new chemically about it and when it was not actually superior to the previous AZ product.
While the plaintiffs’ entire complaint appears to be well researched, it is convincing only to the point that a giant corporation has flexible power to control and enhance its own profits. It offers little or no proof that the defendants committed an actionable tort against the plaintiffs in Searcy County, Arkansas, or anywhere. The complaint would perhaps make an excellent article in a scientific magazine, but it fails as a legal pleading.

liAccordingly, citing Ark. R. Civ. P. 12(b)(6), the court found that the complaint “should be dismissed for failure to meet the prima facie elements of any of the causes of action stated in the pleadings and for failure to state any claim for relief that could be granted.”

Appellants filed a motion for reconsideration on May 31, 2006, contending that the circuit court had not yet considered their fourth amended complaint. In addition, Appellants filed a motion asking the trial judge to recuse on June 6, 2006, suggesting that the court’s language in the letter opinion “refleet[ed] the appearance of having a mind-set that cannot be reconciled with the proposition that the trial judge is committed to hear and decide all issues that are relevant, weighing the issues, and arriving at a judicious result.” Appellants also filed a second motion to recuse on June 16, 2006, which the court also denied.

On June 7, 2006, Appellants filed their 290-page fifth amended complaint. As-traZeneca again moved to dismiss the complaint pursuant to Ark. R. Civ. P. 12(b)(6). In addition, AstraZeneca argued that Appellants’ claims were preempted by federal law. After an October 31, 2006 hearing on the motion to dismiss, the circuit court issued a letter opinion stating that it would grant AstraZeneca’s motion to dismiss.

The court’s letter opinion was formalized in an order entered on August 7, 2008. The court found that Appellants’ claim for violation of the Arkansas Deceptive Trade Practices Act was barred by that statute’s “safe harbor” provision, Ark.Code Ann. § 4-88-101 (Repl.2001). The court further found that Appellants’ price-fixing claims and claims under the Arkansas Unfair Practices Act and the Arkansas Medicare Fraud False Claims Act failed |r,because those statutes do not afford a private right of action. In addition, the court rejected Appellants’ claims for common-law fraud, breach of contract, promissory estoppel, and unjust enrichment. Finally, the court found, as independent grounds for dismissal, that all of Appellants’ claims were preempted by federal law and that Appellants had failed to plead the required elements of their claims, “including that As-traZeneca’s alleged misconduct caused them to purchase Nexium and that they were injured as a result.” 2 Appellants filed a timely notice of appeal on August 26, 2008.

We review a trial court’s decision on a Rule 12(b)(6) motion to dismiss by treating the facts alleged in the complaint as true and by viewing them in the light most favorable to the plaintiff. Sluder v. Steak & Ale of Little Rock, Inc., 361 Ark. 267, 206 S.W.3d 213 (2005); Branscumb v. Freeman, 360 Ark. 171, 200 S.W.3d 411 (2004). 3 In viewing the facts in the light most favorable to the plaintiff, the facts should be liberally construed in plaintiffs favor. Sluder, supra. Our rules require fact pleading, however, and a complaint must state facts, not |fimere conclusions, in order to entitle the pleader to relief. Ark. R. Civ. P. 8(a)(1); Faulkner v. Ark. Children’s Hosp., 347 Ark.

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Bluebook (online)
2009 Ark. 547, 351 S.W.3d 168, 2009 Ark. LEXIS 722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/depriest-v-astrazeneca-pharmaceuticals-lp-ark-2009.