Eastern Maine Medical Center v. Teva Pharmaceuticals USA, Inc

CourtSuperior Court of Maine
DecidedFebruary 13, 2023
DocketCUMbcd-cv-22-00025
StatusUnpublished

This text of Eastern Maine Medical Center v. Teva Pharmaceuticals USA, Inc (Eastern Maine Medical Center v. Teva Pharmaceuticals USA, Inc) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eastern Maine Medical Center v. Teva Pharmaceuticals USA, Inc, (Me. Super. Ct. 2023).

Opinion

STATE OF MAINE BUSINESS & CONSUMER COURT CUMBERLAND, ss. CIVIL ACTION DOCKET NO. BCD-CIV-2022-00025

EASTERN MAINE MEDICAL ) CENTER, et al., ) ) Plaintiffs, ) ) ) ORDER GRANTING v. ) DEFENDANTS’ MOTIONS ) TO DISMISS ) TEVA PHARMACEUTICALS ) USA, INC., et al., ) ) Defendants. )

INTRODUCTION

Ostensibly, this case raises the question of whether a group of hospitals in Maine can

recover damages against companies operating throughout the pharmaceutical supply chain, as

compensation for budget overruns and other injuries related to the increased cost of doing business

as medical care providers during the ongoing opioid crisis in the State of Maine. In actuality, the

case tests the application of Maine’s pleading requirements to a complaint that is decidedly not

“short and plain.” Eastern Maine Medical Center, The Aroostook Medical Center, The Blue Hill

Memorial Hospital, Charles A. Dean Memorial Hospital, Inland Hospital, Maine Coast Regional

Health Facilities, Mercy Hospital, MRH Corp., and Sebasticook Valley Health (collectively, the

“Plaintiffs”) have filed a 505 page Complaint wherein they seek compensatory damages, treble

and punitive damages, restitution, and other equitable relief. 1 Each Plaintiff is a non-profit

1 The Complaint purports to set out six counts. Count I is for common law negligence, and includes claims of negligent marketing and distribution. (Compl. ¶¶ 1728-1763.) Count II alleges common law nuisance and violation of 17 M.R.S. § 2701 (2022). (Compl. ¶¶ 1764-1786.) Count III alleges unjust enrichment. (Compl. ¶¶ 1787-1799.) Count IV includes claims of fraud and negligent misrepresentation. (Compl. ¶¶ 1800-1824.) Count V pleads fraudulent concealment. (Compl. ¶¶ 1825-1833.) Finally, Count VI alleges civil conspiracy. (Compl. ¶¶ 1834-1847.)

1 corporation that operates a hospital in the State of Maine. (Compl. ¶¶ 36-44.) Each of Plaintiffs’

causes of action are pled against numerous defendants, grouped according to their role in the

pharmaceutical supply chain: Sales Representative Defendants 2; Marketing Defendants and

Associates 3; Distributor Defendants 4; and Pharmacy Defendants 5.

The Sales Representative Defendants, Marketing Defendants, Distributor Defendants, and

Pharmacy Defendants each filed a Motion to Dismiss Plaintiffs’ Complaint under Maine Rule of

Civil Procedure 12(b)(6). The Court heard oral argument on each of the respective motions on

December 12, 2022. For the reasons discussed below, Plaintiffs’ Complaint is DISMISSED in its

entirety and as to each named defendant.

STANDARD OF REVIEW

2 The Complaint names four individual sales representative defendants, each of whom is a natural person residing in the State of Maine: Jeff Saucier, Marc Blattstein, Jason Nagel, and Frank Neel. (Compl. ¶¶ 96-100.) The Court dismissed Plaintiffs’ claims against Nagel and Neel by the Order dated December 13, 2022. Similarly, all claims against Blattstein were dismissed by this Court’s Order dated January 25, 2023. 3 The Complaint names the following marketing defendants: Teva Pharmaceutical Industries, Ltd.; Teva Pharmaceuticals USA, Inc.; Cephalon, Inc.; Watson Laboratories, Inc; Actavis, LLC; Actavis Pharma, Inc; Johnson & Johnson; Janssen Pharmaceuticals, Inc.; Endo Pharmaceuticals, Inc.; Endo Health Solutions, Inc.; Par Pharmaceutical, Inc.; Par Pharmaceuticals Companies, Inc.; Allergan plc; Allergan Finance, LLC; Allergan Sales, LLC; Allergan USA, Inc.; AbbVie, Inc.; Mallinckrodt LLC; Mallinckrodt plc; SpecGx LLC; Purdue Pharma, L.P.; Purdue Pharma, Inc.; and The Purdue Frederick Company. (Compl. ¶¶ 45-107.) The Sales Representative Defendants are included among the Marketing Defendants. (Compl. ¶¶ 96-100, 107.) In their motion, the Marketing Defendants refer to themselves collectively as the “Manufacturer Defendants.” (Marketing Defs.’ Mot. Dismiss 1.) Consistent with the Complaint, the Court refers to this suite of defendants as the “Marketing Defendants” herein. Johnson & Johnson and Janssen Pharmaceuticals, Inc. also filed a separate Motion to Dismiss, which the Court decides with the other defendants’ motions. On August 17 and 18, 2022, this case was stayed as to Endo Health Solutions, Inc., Endo Pharmaceuticals, Inc., Par Pharmaceuticals, Inc., and Par Pharmaceutical Companies, Inc., as well as to their affiliated sales representative, Jeff Saucier. 4 The named Distributor Defendants are: AmerisourceBergen Drug Corporation; Xcenda L.L.C.; Anda, Inc.; Cardinal Health, Inc.; H.D. Smith, LLC; McKesson Corporation; Walgreen Co.; Walgreen Eastern Co., Inc.; CVS Health Corporation; CVS Pharmacy, Inc.; CVS Orlando FL Distribution, L.L.C.; CVS TN Distribution, L.L.C.; Rite Aid of Maine, Inc.; Rite Aid of Maryland, Inc.; P.J.C. Distribution, Inc.; Eckerd Corporation; Walmart Inc.; and Wal-Mart Stores East, LP. (Compl. ¶¶ 108-155.) The Distributor Defendants’ Motion to Dismiss was filed by AmerisourceBergen Drug Corporation, Cardinal Health, Inc., and McKesson Corporation, and was subsequently joined by Xcenda, L.L.C., Anda, Inc., and H.D. Smith, LLC. 5 The “Pharmacy Defendants” are among the Distributor Defendants in the Complaint, but they are distinguished by their separately filed Motion to Dismiss. The “Pharmacy Defendants” grouping includes: Walgreen Co.; Walgreen Eastern Co., Inc.; CVS Pharmacy, Inc.; CVS Orlando FL Distribution, L.L.C.; CVS TN Distribution L.L.C.; Rite Aid of Maine, Inc.; Rite Aid of Maryland, Inc.; P.J.C. Distribution, Inc.; Eckerd Corporation; Walmart, Inc.; and Wal- Mart Stores East, LP. (Pharmacy Defs.’ Mot. Dismiss 1 n.1.)

2 A motion to dismiss under Rule 12(b)(6) “tests the legal sufficiency of the complaint and

does not probe the merits of the underlying case.” Carey v. Bd. of Overseers of the Bar, 2018 ME

119, ¶ 19, 192 A.3d 589 (internal quotation marks omitted). In reviewing a motion to dismiss,

courts must “consider the facts in the complaint as if they were admitted.” Bonney v. Stephens

Mem. Hosp., 2011 ME 46, ¶ 16, 17 A.3d 123 (citing Saunders v. Tisher, 2006 ME 94, ¶ 8, 902

A.2d 830). The complaint is viewed “in the light most favorable to the plaintiff to determine

whether it sets forth elements of a cause of action or alleges facts that would entitle the plaintiff to

relief pursuant to some legal theory.” Id. (quotation marks omitted).

Although Maine’s notice pleading requirements are forgiving, Desjardins v. Reynolds,

2017 Me 99, ¶ 17, 162 A.3d 228, a complaint must allege facts sufficient to demonstrate that a

plaintiff has been injured in a legally cognizable way. America v. Sunspray Condo. Ass’n, 2013

ME 19, ¶ 20, 61 A.3d 1249 (quoting Burns v. Architectural Doors & Windows, 2011 ME 61, ¶ 17,

19 A.3d 823). Additionally, while the material allegations of the complaint must be taken as

admitted, the Court “is not bound to accept the complaint’s legal conclusions.” Seacoast Hangar

Condo. II Ass’n. v. Martel, 2001 ME 112, ¶ 16, 775 A.2d 1166 (citations omitted). Conclusory

factual statements, even if taken as true, are insufficient to avoid dismissal if a plaintiff fails to

allege actual facts to make out a claim. Carey, 2018 ME 119, ¶ 23, 192 A.3d 589 (citation omitted).

“Dismissal is warranted when it appears beyond a doubt that the plaintiff is not entitled to relief

under any set of facts that he might prove in support of his claim.” Bonney, 2011 ME 46, ¶ 16, 17

A.3d 123 (quotation marks omitted).

More rigorous pleading requirements apply to causes of action sounding in fraud. M.R.

Civ. P. 9(b). Allegations of fraudulent misconduct must be stated with particularity. Picher v.

Roman Catholic Bishop of Portland, 2013 ME 99, ¶ 2, 82 A.3d 101.

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