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The logo of consulting firm McKinsey and Company in Paris, France May 16, 2019. REUTERS/Charles Platiau
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(Reuters) – Eleven states on Monday argued that cities and counties nationally were trying to "usurp" their authority by suing McKinsey & Co Inc for turbocharging the U.S. opioid epidemic, after McKinsey already agreed last year to settle with every U.S. state for $642 million.
A coalition of states led by Ohio Attorney General Dave Yost filed a brief in San Francisco federal court backing the consulting firm's contention that local governments were barred from suing it separately over the settled claims.
The attorneys general warned U.S. District Judge Charles Breyer that allowing the local governments to proceed with their "copy-cat" claims would handicap states in future litigation and make it harder for statewide settlements to be achieved.
"The problem will only grow worse if this Court does not act early to rule that a State can indeed provide the 'universal peace' of extinguishing all claims, present or future, brought by the State and its component parts," the states argued.
The other states that signed onto the amicus brief are Arkansas, Connecticut, Idaho, Indiana, Kansas, Louisiana, Montana, Nebraska, North Dakota and Texas.
All but Connecticut have Republican attorneys general, and several previously have taken stances adverse to those of local governments in the broader litigation against drug companies accused of contributing to the epidemic.
Elizabeth Cabraser, a lead attorney for the local governments at Lieff Cabraser Heimann & Bernstein, did not respond to a request for comment, nor did McKinsey's lawyer, James Bernard of Stroock & Stroock & Lavan.
McKinsey last year reached agreements with state attorneys general to pay $642 million to resolve claims it helped drug manufacturers, including OxyContin maker Purdue Pharma LP, design marketing plans and boost sales of painkillers.
Lawsuits by cities, counties and others followed, and Breyer now oversees at least 90 cases.
Defense lawyers have argued that claims by cities and counties were resolved through the states' settlements. Breyer is expected to hear arguments on that question on March 31.
In Monday's brief, the states argued that their counties and municipalities lacked standing to assert their own claims, and that the terms of the settlement agreement made clear most of the localities' claims had been released.
They also argued the money that the local governments were seeking to cover the harms they suffered addressing the epidemic were duplicative, since their funding in large part came from the states themselves.
The case is In re McKinsey & Co Inc National Prescription Opiate Consultant Litigation, U.S. District Court for the Northern District of California, No. 21-md-02996.
For McKinsey: James Bernard of Stroock & Stroock & Lavan
For the plaintiffs: Elizabeth Cabraser of Lieff Cabraser Heimann & Bernstein
Our Standards: The Thomson Reuters Trust Principles.
Nate Raymond reports on the federal judiciary and litigation. He can be reached at nate.raymond@thomsonreuters.com.
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