Eastern Maine Medical Center v. Walgreen Co.

2025 ME 10
CourtSupreme Judicial Court of Maine
DecidedFebruary 6, 2025
StatusPublished
Cited by1 cases

This text of 2025 ME 10 (Eastern Maine Medical Center v. Walgreen Co.) is published on Counsel Stack Legal Research, covering Supreme Judicial 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. Walgreen Co., 2025 ME 10 (Me. 2025).

Opinion

MAINE SUPREME JUDICIAL COURT Reporter of Decisions Decision: 2025 ME 10 Docket: BCD-23-73 Argued: March 7, 2024 Decided: February 6, 2025

Panel: STANFILL, C.J., and MEAD, HORTON, CONNORS, LAWRENCE, and DOUGLAS, JJ.

EASTERN MAINE MEDICAL CENTER et al.

v.

WALGREEN CO. et al.

HORTON, J.

[¶1] Eastern Maine Medical Center and eight other Maine hospitals1 (the

Hospitals) appeal from a judgment entered in the Business and Consumer

Docket (Duddy, J.) dismissing their 509-page complaint against businesses and

individuals (“the Opioid Sellers”) involved in marketing and distributing

prescription opioids.2 The essence of the Hospitals’ cause of action is that the

1 The other hospitals are Aroostook Medical Center, Blue Hill Memorial Hospital, Charles A. Dean

Memorial Hospital, Inland Hospital, Maine Coast Regional Health Facilities, Mercy Hospital, MRH Corp., and Sebasticook Valley Health.

2 The complaint sorts the defendants into two primary categories: “marketing defendants” and “distributor defendants.” The marketing defendants include pharmaceutical manufacturing and sales companies, and the distributor defendants include national retail pharmacies and distributors.

The named marketing defendants are 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 Finance, LLC; Allergan Sales, LLC; Allergan USA, Inc.; and AbbVie, Inc. The case is stayed as to the following marketing defendants due to the defendants’ pending bankruptcy proceedings: Endo Pharmaceuticals, Inc.; Endo Health Solutions, Inc.; Par Pharmaceutical, Inc.; and Par Pharmaceuticals Companies, Inc. In a series of unopposed motions 2

Opioid Sellers “worked together to create illegitimate demand for dangerous

opioids and to unlawfully increase the supply to meet that demand,” causing an

epidemic of opioid misuse and opioid disorders that required the Hospitals to

incur the high cost of care for patients diagnosed with opioid misuse, addiction,

and dependency, with only partial reimbursement provided by private and

government insurance. The Hospitals contend that the court erred in

dismissing their complaint and that if the complaint was defective, the court

should have granted them leave to amend. We affirm the dismissal.

filed after oral argument, the Hospitals requested a limited stay of the appeal as to all other marketing defendants based on pending settlements. We granted the stay.

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 Walmart Stores East, LP. The case is stayed as to the following distributor defendants due to the defendants’ pending bankruptcy proceedings: Rite Aid of Maine, Inc.; Rite Aid of Maryland, Inc.; P.J.C. Distribution, Inc.; and Eckerd Corporation. In unopposed motions filed after oral argument, the Hospitals requested a limited stay of the appeal as to the following distributor defendants based on pending settlements: AmerisourceBergen Drug Corporation; Xcenda L.L.C.; Anda, Inc.; Cardinal Health, Inc.; H.D. Smith, LLC; and McKesson Corporation. We granted the stay.

The complaint also named as defendants four individual sales representatives associated with one or more businesses named as marketing defendants: Marc Blattstein, Jason Nagel, Frank Neel, and Jeff Saucier. The complaint was dismissed with prejudice as to Nagel and Neel on December 13, 2022, and without prejudice as to Blattstein on January 25, 2023. The Hospitals did not appeal those dismissals, and those individuals have not participated in this appeal. The case is stayed as to Jeff Saucier due to a pending bankruptcy. 3

I. BACKGROUND

[¶2] The following facts are drawn from the procedural record and the

Hospitals’ complaint, viewed in the light most favorable to them. See Meridian

Med. Sys., LLC v. Epix Therapeutics, Inc., 2021 ME 24, ¶ 2, 250 A.3d 122. The nine

Hospitals are non-profit corporations that operate hospitals in Maine. On

September 10, 2021, the Hospitals filed a complaint in the Superior Court

(Cumberland County) against the Opioid Sellers, all of whom they alleged

participated in the sale, marketing, and distribution of opioids in Maine.

[¶3] The complaint alleges six theories of liability for the Hospitals’

causes of action: negligence, public nuisance,3 unjust enrichment, fraud and

negligent misrepresentation, fraudulent concealment, and civil conspiracy. The

complaint’s 509 pages contain 1,847 numbered paragraphs of allegations that

in summary assert the following:

 The Opioid Sellers have engaged in a concerted effort to increase the use of opioids to treat a wide array of medical conditions. Despite knowing that opioids were addictive and that there was no evidence that they were safe or effective for treating many medical conditions, the Opioid Sellers fraudulently influenced regulatory bodies, doctors, and other organizations to endorse and proselytize the efficacy of opioids and concealed information regarding their risks, with the goal of increasing their use through prescribing practices. Through these independent actors, the Opioid Sellers successfully induced prescribers and hospitals

3 Although the complaint captions the Hospitals’ second claim broadly as a claim for “nuisance,” it alleges that the Opioid Sellers engaged in interference with public rights only, thereby limiting the claim to one for public nuisance. See infra ¶¶ 22-28. 4

to utilize opioids more extensively. It was foreseeable that many patients who were prescribed opioids would misuse them. Nonetheless, the Opioid Sellers continued to advocate for broader use of opioids and failed to report data that clearly showed that demand for opioids exceeded legitimate medical needs.

 As a foreseeable consequence, an epidemic of opioid misuse, addiction, and dependency ensued nationwide, including in Maine. The Hospitals have a legal obligation to provide treatment in many instances regardless of whether they will be compensated, and they foreseeably incurred various costs in coping with the epidemic of opioid misuse created by the Opioid Sellers’ conduct. The Hospitals realized lower rates of return for treating opioid-dependent patients, whose treatment is more complex and costly than other patients. Additionally, the Hospitals incurred costs identifying opioid-dependent patients, purchasing medically unnecessary quantities of opioids, training personnel to treat opioid overdoses, and hiring personnel to address safety concerns caused by opioid-dependent patients.

[¶4] The matter was transferred to the Business and Consumer Docket

in May 2022. Later in May 2022, the Opioid Sellers filed multiple motions to

dismiss the complaint. The Hospitals opposed the motions to dismiss in August

2022 and requested leave to amend their complaint pursuant to

M.R. Civ. P. 15(a) if the court determined that the defendants’ motions should

be granted in whole or part.

[¶5] After hearing oral argument on the motions, the court entered an

order in February 2023 dismissing the complaint in its entirety as to all of the

Opioid Sellers.

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