Lester E. Cox Medical Centers v. Amneal Pharmaceuticals, LLC

CourtDistrict Court, W.D. Missouri
DecidedSeptember 28, 2023
Docket6:22-cv-03192
StatusUnknown

This text of Lester E. Cox Medical Centers v. Amneal Pharmaceuticals, LLC (Lester E. Cox Medical Centers v. Amneal Pharmaceuticals, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lester E. Cox Medical Centers v. Amneal Pharmaceuticals, LLC, (W.D. Mo. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MISSOURI SOUTHERN DIVISION

LESTER E. COX MEDICAL CENTERS d/b/a COX MEDICAL CENTERS, ET AL.

Plaintiffs,

v. Case No. 6:22-CV-03192-MDH AMNEAL PHARMACEUTICALS, LLC, ET AL. Defendants.

ORDER Before the Court are the following motions: Manufacturer Defendants’ Joint Motion To Dismiss Plaintiffs’ First Amended Petition. (Doc. 104).1 Defendant KVK-Tech joined the Manufacturer Defendants’ motion and filed a Motion to Dismiss (Doc. 97). Defendants Actavis Generic Entities filed a joint motion to dismiss and joined the Manufacturer’ motion to dismiss (Doc. 102). Defendants Teva Pharmaceuticals USA, Inc. and Cephalon, Inc. (collectively “Teva Defendants”) joined in the Manufacturer’s Motion and filed an additional motion to dismiss (Doc. 106). KVK-Tech filed a motion to join in the Actavis Generic Entities’ Joint Motion to Dismiss. (Doc. 108).

1 The Manufacturer Defendants joining this motion include Teva Pharmaceuticals USA, Inc.; Cephalon, Inc.; Watson Laboratories, Inc.; Warner Chilcott Company, LLC; Actavis Pharma, Inc. f/k/a Watson Pharma Inc.; Actavis South Atlantic LLC; Actavis Elizabeth LLC; Actavis Mid Atlantic LLC; Actavis Totowa LLC; Actavis LLC; Actavis Kadian LLC; Actavis Laboratories UT, Inc.; Actavis Laboratories FL, Inc.; Johnson & Johnson; Janssen Pharmaceuticals, Inc., and its predecessor companies, Ortho-McNeil Janssen Pharmaceuticals, Inc. and Janssen Pharmaceutica, Inc.; Noramco, Inc.; AbbVie Inc.; Abbott Laboratories; Abbott Laboratories, Inc.; Allergan Finance, LLC; Allergan Sales, LLC; Allergan USA, Inc.; and KVK-Tech, Inc. Distributor Defendants filed a Joint Motion To Dismiss Plaintiffs’ First Amended Petition (Doc. 99).2 Defendant Anda, Inc. filed a Motion to Dismiss and Joinder in the Distributors’ Joint Motion to Dismiss (Doc. 109). Plaintiffs filed an omnibus response in opposition to all pending motions to dismiss. (Doc. 169). Defendants requested oral argument on all pending motions. (Doc. 121). The parties have

filed numerous notices of additional authority and Defendants have a pending Motion for Leave to File Notice of Supplemental Authority. (Doc. 283). Further, Plaintiffs filed a motion to strike Defendants’ Notice of Supplemental Authority. (Doc. 238). Manufacturer Defendants filed a motion for leave to file joint response to Plaintiffs’ Notice of Filing of Second Supplemental Authority. (Doc. 239). All motions are ripe for review. The Court has reviewed all of the parties’ submissions and for the reasons stated herein, the motions are denied.3 BACKGROUND Plaintiffs filed their Petition against Defendants in the Circuit Court of Greene County,

Missouri, asserting claims of negligence, public nuisance, unjust enrichment, fraud, and civil conspiracy. In August 2020, Defendants moved to dismiss Plaintiffs’ Petition for failure to state a claim. The state court denied Defendants’ motions in their entirety and issued separate written opinions for the Manufacturers and Distributors.4

2 The Distributor Defendants include AmerisourceBergen Drug Corporation; Cardinal Health, Inc.; H. D. Smith, LLC f/k/a H. D. Smith Wholesale Drug Co.; and McKesson Corporation. 3 Plaintiffs have filed notices that they have settled their claims and/or dismissed their claims against certain Defendants. To the extent any issues raised in the pending motions to dismiss have already been resolved by the parties any such issues raised in the pending motions to dismiss are denied as moot. 4 On March 22, 2022, the Distributor and Retailer Defendants petitioned the Missouri Court of Appeals Southern District for a Writ of Prohibition or Mandamus. On March 23, 2022, the Petition was denied. On April 4, 2022, the Manufacturing Defendants and Distributor Defendants answered On July 1, 2022, Plaintiffs filed a First Amended Petition (“FAP”) adding certain Plaintiffs and one new defendant, McKesson Corporation. On July 28, 2022, McKesson removed the case citing a federal officer defense. Defendants filed the instant motions to dismiss. Plaintiffs argue the current motions raise the same arguments presented in state court that have been previously considered and denied by Judge Cook. Plaintiffs move this Court to apply the law of the case

doctrine contending Defendants should not be permitted to “re-argue” issues that were decided and rejected by the state court prior to removal. The Court rejects Plaintiffs’ law of the case theory. See Kraynak v. New Better Bus. Bureau, Inc., No. 8:19CV122, 2019 WL 13299933, at *4 (D. Neb. June 4, 2019) (internal citations omitted); and Joe Hand Promotions, Inc. v. Ridgway, 2015 WL 1321477, at *2 (W.D. Mo. Mar. 24, 2015) (the law of the case doctrine does not apply to interlocutory orders). The Court considers the arguments presented in Defendants’ motions to dismiss as discussed herein. Factual Allegations Plaintiffs are Missouri hospitals and treatment facilities that are alleging damages for the

costs associated with treating opioid use disorder (“OUD”) patients. Plaintiffs allege Defendants marketed and promoted opioid medications in a way that was false and misleading creating an opioid epidemic that in turn led to the treatment of OUD patients with increased costs. Plaintiffs state that the Defendants each played a very substantial role in creating the opioid epidemic. Plaintiffs plead, in addition to derelict reporting and lacking policies, Defendants’ deceptive and fraudulent acts caused this epidemic and as a result created a nuisance which harmed communities served by the Plaintiffs. Plaintiffs allege they have suffered injuries, including, but not limited to,

Plaintiffs’ Petition. Thereafter, on April 15, 2022, the Defendants petitioned the Missouri Supreme Court for a Writ of Prohibition or, in the Alternative, Mandamus. On May 17, 2022, the Missouri Supreme Court denied Defendants’ petition. emergency rooms and beds being overrun with patients whose medical conditions result from, or are worsened by, a history of prescription opioid use. Plaintiffs contend they have had to add services, divert resources from other areas of care, hire extra security personnel to control their emergency rooms, and meet additional regulatory burdens because of Defendants’ conduct. Plaintiffs plead that the added demands of caring for OUD patients has strained the hospitals,

resulting in direct and indirect damages which would not have been incurred but for the crisis. For example, Plaintiffs seek operational losses suffered as a result of treating OUD patients. Plaintiffs do not plead that the injury is exclusive to opioid related diagnoses, like overdose. Rather, Plaintiffs state they intend to introduce evidence that an OUD patient (which is not interchangeable with “overdose patient”) often presents with complexity, requiring more hospital resources. and that it costs Plaintiffs more to treat an OUD patient in comparison to treatment of a non-OUD patient with the same exact diagnosis code.5 Defendants move to dismiss Plaintiffs’ claims arguing Plaintiffs’ claims fail because Missouri law precludes Plaintiffs from seeking damages for personal injuries allegedly suffered

by patients; Missouri’s hospital-lien statute bars Plaintiffs’ claims; Plaintiffs’ claims fail for lack of causation and Plaintiffs’ negligence claim fails for lack of duty and is barred by the economic loss doctrine. Defendants argue Plaintiffs’ public-nuisance claim fails because Missouri law bars public-nuisance claims premised on the marketing and distribution of lawful products; Plaintiffs cannot establish an interference with a public right and Plaintiffs have not pled an injury different in kind from the general public. Defendants argue Plaintiffs’ fraud claim fails because they cannot

5 Plaintiffs’ First Amended Petition is approximately 370 pages long.

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Lester E. Cox Medical Centers v. Amneal Pharmaceuticals, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lester-e-cox-medical-centers-v-amneal-pharmaceuticals-llc-mowd-2023.