Jefferson County v. Williams

CourtDistrict Court, E.D. Missouri
DecidedMarch 8, 2024
Docket4:23-cv-01539
StatusUnknown

This text of Jefferson County v. Williams (Jefferson County v. Williams) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jefferson County v. Williams, (E.D. Mo. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

JEFFERSON COUNTY, ) ) Plaintiff, ) ) vs. ) Case No. 4:23-cv-1539-MTS ) DANNIE E. WILLIAMS, M.D., et al., ) ) Defendants. )

MEMORANDUM AND ORDER Before the Court is Plaintiff’s Motion to Remand, Doc. [36]. On August 1, 2018, Plaintiff filed its initial Petition in the Twenty-Second Judicial Circuit Court of Missouri in the City of St. Louis (“22nd Judicial Circuit”).1 Doc. [9]. Plaintiff then filed a First Amended Petition, Doc. [11], on October 21, 2019, and a Second Amended Petition, Doc. [13], on June 15, 2020. On December 1, 2023, more than three years later, Defendants filed their Notice of Removal seeking removal pursuant to 28 U.S.C. §§ 1442(a), (hereinafter “the federal officer removal statute”) and 1446(b)(3). Doc. [6]. Now, Plaintiff seeks remand to state court. For the reasons that follow, the Court will grant Plaintiff’s Motion to Remand. Background Between 2013 and 2017, Plaintiff Jefferson County incurred 324 deaths, 1,941 emergency room visits, and other alleged costs including harm to law enforcement, prosecution, prisons, addiction treatment, and elsewhere, due to the alleged abuse, “misbranding,” and “overabundance” of opioids. Doc. [13] at 1, ¶ 1. It is Plaintiff’s position that, absent these preferences, the opioids “would not have entered the marketplace.” Id. ¶ 683. As a result, on January 29, 2019, Plaintiff

1 On December 20, 2019, the 22nd Judicial Circuit ordered a change of venue, Doc. [12], from the Circuit Court of the City of St. Louis to the Jefferson County Circuit Court, the Twenty-Third Judicial Circuit of Missouri. filed this action along with twenty cities and counties to recover the “public costs” incurred in combatting the opioid epidemic. Doc. [13] ¶ 683; Doc. [6] ¶ 12. At the time of filing, Plaintiff named numerous parties as Defendants including opioid manufacturers, distributors, retail pharmacies, and pharmacy benefit managers (“PBMs”). Doc. [13] at 1. Following Plaintiff’s

filing, then-Defendant CVS Pharmacy, Inc., removed the case to this Court under 28 U.S.C. § 1332(d), the Class Action Fairness Act. Doc. [6] ¶ 12.2 The case was then transferred to the federal Opioid Multidistrict Litigation (“MDL”), but, on July 24, 2019, the presiding judge “severed and remanded the Jefferson County and Franklin County cases to Missouri state court.”3 Doc. [6] ¶13; In re: National Prescription Opiate Litigation, 1:17-md-2804-DAP, ECF No. 1987 (N.D. Ohio, July 22, 2019). However, prior to the severance and remand, several Defendants, to no avail, joined in an Objection to Sever and Remand, see id. at ECF No. 1931, including Express Scripts, Inc. and OptumRx, Inc. At present, only Express Scripts, Inc., (“Express Scripts”) and OptumRx, Inc., (“OptumRx”) remain as Defendants (collectively, “the Defendants” or “the PBM Defendants”).

Express Scripts and OptumRx are PBMs that act as “gatekeepers” by “negotiat[ing] with drug manufacturers to offer preferred drug formulary4 placement for the manufacturers’ drugs” and establish reimbursement rates for the drugs dispensed. Doc. [13] ¶ 665. However, Plaintiff alleges that these PBMs, through formularies and pricing strategies, are “driving patients to opioids” and

2 Although not included in the Second Amended Petition, the facts provided within the Notice of Removal may also be referenced by the Court in its review. See Macaulay v. St. Louis BOA Plaza, LLC, 4:21-cv-476-SRC, 2021 WL 3472632, at *2 (E.D. Mo. Aug. 6, 2021) (“‘[A] defendant’s notice of removal need include only a plausible allegation’ that the jurisdictional requirements are satisfied.” (quoting Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 88 (2014))). 3 The presiding judge acknowledged that two Missouri state court judges contacted him and requested these cases be remanded. Doc. [6] ¶ 13. One of the requesting judges wrote a letter requesting that the Jefferson and Franklin County cases, specifically, be remanded to the 22nd Judicial Circuit. Id. 4 A formulary is a “list of prescription drugs covered by a prescription drug plan or another insurance plan offering prescription drug benefits.” See Formulary, HealthCare.gov (last visited March 8, 2024), https://www.healthcare.gov/glossary/formulary/. “away from” abuse-deterrent and less addictive forms of opiates. Id. ¶ 707. In addition to providing PBM services through mail order pharmacies, Defendants are also engaged in providing PBM services to federal agencies. Id. ¶ 667; Doc. [6] ¶¶ 10-11. For example, Express Scripts has contracted with the Department of Defense (“DoD”) to provide services to its TRICARE5 plan and

the Federal Employee Health Benefits Plan (“FEHBP”) overseen by the Office of Personnel Management (“OPM”). Doc. [6] ¶ 10. OptumRx is also under contract to provide PBM services to the Veterans Health Administration (“VHA”). Id. ¶ 11. In its Second Amended Petition, Plaintiff alleges Defendants contributed to the opioid crisis by “controlling which pain medications reach[ed] the marketplace” through the design of their formulary. Doc. [13] ¶¶ 665, 713. Plaintiff also claims Express Scripts and OptumRx derive substantial revenue as PBMs and utilize their formularies to grant “preferred alternative status” to OxyContin and morphine over less addictive opioids. Doc. [13] ¶¶ 670, 679; Doc. [6] ¶ 12. In their requests for discovery, Defendants sent interrogatories to Plaintiff on the scope of its claims. Specifically, Defendants inquired whether the claims are related to Defendants’ contractual services to federal health plans. Doc. [6] ¶¶ 18-20. In response to OptumRx’s

Interrogatory Nos. 11 and 12, Plaintiff provided Defendants with what has been labeled as the “Red Flag Analysis,” which identified the prescription claims on which Plaintiff relied in its case.6 Id. ¶ 21. Plaintiff continued to identify the claims relied on in subsequent Red Flag Analyses, including the Sixth Red Flag Analysis served on February 14, 2022, which contained 9,326 prescription claims adjudicated by Express Scripts on behalf of the DoD for TRICARE.7 Id. ¶ 23.

5 TRICARE is a DoD health-care program that “covers active-duty service members and veteran retirees.” Doc. [6] ¶ 10. 6 More specifically, the Red Flag Analysis identifies “the alleged indicators or warning signs that the County contends could suggest problematic prescriptions.” Doc. [6] ¶ 21. 7 Defendant’s Notice of Removal, Doc. [6], details that Plaintiff served the Sixth Red Flag Analysis on February 3rd, before sending “formal notice” that it was withdrawing the February 3rd version. Doc. [6] ¶ 23. Then, the Notice of Removal continues to state that the County served a revised Red Flag Analysis on February 14th. Id. ¶ 24. Contrary Although the Sixth Red Flag Analysis was later revised on February 14, 2022 to omit the TRICARE claims, the inclusion of the federal prescription claims, in Defendants’ view, suggested Plaintiff was seeking to establish liability for federal prescription claims. Id. ¶¶ 24-25. As a result, on March 10, 2022, Defendants notified Plaintiff of their intent to remove the action to federal

court, unless Plaintiff stipulated that it would “withdraw[] all challenges to federal prescription claims and [] not seek recovery” based on the federal prescription claims. Id. ¶ 25. Plaintiff communicated its withdrawal in writing on March 11, 2022, but the parties memorialized Plaintiff’s withdrawal from challenging the federal prescription claims in two separate Joint Stipulation and Consent Orders, the first of which was entered by the court on March 17, 2022.8 See id. ¶ 25; Docs. [2-16], [2-17].

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Jefferson County v. Williams, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jefferson-county-v-williams-moed-2024.