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Woman fed up with unfilled boxes sues candy company

By: Lisa Fickenscher

A Manhattan woman who bought a 3.5-ounce package of Junior Mints felt cheated after claiming to find the candy filled just 57 percent of the box.

But instead of just getting mad, Biola Daniel is trying to get even.

Daniel has filed a class-action lawsuit in federal court claiming Tootsie Roll Industries, the maker of Junior Mints, intentionally deceives sweet-tooth shoppers by using the disproportionately-large boxes.

By comparison, Milk Duds, about the same size as a Junior Mint, fill 73 percent of its boxes while Good n Plenty candies fill 88 percent of its boxes, the suit, filed in Manhattan federal court, claims.

The suit is one of a growing number of lawsuits, which some claim are frivolous, aimed at food products and how they are served or marketed.

Earlier this year, a California woman sued Nestle over half-filled Raisinets boxes, seeking $5 million in damages.

Krispy Kreme has been sued because its raspberry-filled donuts don’t contain any real raspberries; a suit was filed against 5-hour energy drinks claiming it didn’t provide five hours of an energy boost and Starbucks was sued over claims its cold drinks were served with too much ice.

The Institute for Legal Reform, which fights frivolous class-action lawsuits, said the number of food related lawsuits filed in federal courts has skyrocketed from 20 in 2008 to 171 last year.

C.K. Lee, the lawyer for Daniel, has a prolific practice suing companies for false advertising or violating the Americans with Disabilities Act. On Thursday, Lee sued the play “Hamilton” for not providing audio descriptions for visually impaired audience members.

The Junior Mints suit — which described the empty space in the box as “slack-fill” — claims that the plaintiff Daniel and others in the class “suffered monetary losses” by purchasing the mints and are entitled damages for their “injuries.”

“These ‘slack-fill’ lawsuits are like junk food — they make lawyers fat and give the rest of our economy a stomach ache,” said Tom Stebbins, Executive Director, Lawsuit Reform Alliance of New York.

The Lawyer Who Beat Big Tobacco Takes On the Opioid Industry

By: Esmé E Deprez and Paul Barrett

Seven years ago, Mike Moore stepped from the 2 a.m. darkness into the light of a small home off Lakeland Drive in Jackson, Miss., to find his nephew close to death. The 250-pound 30-year-old was slumped on the living room couch, his face pale, breath shallow, and chest wet with vomit. It was his fiancée who’d called Moore, waking him in a panic. Now they were both screaming in the man’s ears, dousing him with ice cubes and water, and pinching him as his respiratory system began to collapse.

Moore had become familiar with the signs of an overdose since his nephew, for whom he’s a father figure, filled his first legal prescriptions in 2006 for Percocet, an opioid painkiller made by Endo Pharmaceuticals Inc. By 2010, his nephew, who asked not to be named, was obtaining generic fentanyl on the street. Another synthetic analog to the opium poppy, fentanyl—the drug that killed Prince—is as much as 100 times stronger than morphine. The night of the overdose, Moore’s nephew had been wearing a fentanyl patch on his arm and sucking on another. “An ordinary horse would have been dead,” Moore recalls in his Mississippi drawl.

Rather than waiting for an ambulance, Moore dragged his nephew to his car and raced toward the hospital. As doctors revived the unconscious man, the stares of the staff and other patients were made worse for Moore by recognition. Once his home state’s highest-profile public official, now he was just one more American confronting the opioid epidemic.

Moore, who’s 65, served as Mississippi’s attorney general from 1988 to 2004. In 1994, using an untested and widely derided legal strategy, he became the first state AG to sue tobacco companies for lying about nicotine addiction and hold them accountable for sick smokers’ health-care costs. A Democrat, he marshaled AGs from around the country along with private plaintiffs’ lawyers who stood to reap massive fees. He went on to negotiate the largest corporate legal settlement in U.S. history: a 50-state, $246 billion agreement that funds smoking cessation and prevention programs to this day. He even scored a Hollywood credit, playing himself in The Insider, the 1999 thriller about a tobacco industry whistleblower, starring Al Pacino and Russell Crowe.

After his 16 years as AG, Moore left public service for a private-sector salary, opening a practice in the Jackson suburb of Flowood. The Mike Moore Law Firmspecializes in complex disputes between states and companies. This spring he finished helping oversee negotiations between BP Plc and the federal government, five states, and 475 municipalities, which resulted in a $20 billion settlement for damages from the Deepwater Horizon oil spill.

Moore now lives near Orlando, with his wife, four rescue dogs, and Jade, a capuchin monkey. He’s remained immersed in anti-tobacco efforts, chairing such nonprofits as the Partnership for a Healthy Mississippi and the Truth Initiative. But as he’s watched the tobacco victory pay off in declining smoking rates, he’s also seen easy access to powerful pain medication spark a new deadly crisis. He’s convinced this is the moment to work the same mechanisms on the drug companies that forced the tobacco industry to heel—and he’s committed himself to making that happen.

“It’s clear they’re not going to be part of the solution unless we drag them to the table”

On June 20, 1997, a coalition of state AGs stood behind a podium in the grand ballroom of the ANA Hotel in Washington to announce the culmination of a four-year effort. They’d filed so many individual, expensive lawsuits that tobacco companies were cornered into negotiating a collective settlement instead of fighting each one separately. The agreement punished the industry for past misconduct, created a fund to pay for tobacco-related medical costs, and banned using Joe Camel in advertisements. “We wanted this industry to have to change the way they do business—and we have done that,” a youthful Moore said to the roomful of journalists and cameras.

Twenty years later, in mid-July 2017, he was back at the same hotel, now a Fairmont. In a third-floor meeting room, he and more than a dozen private attorneys sat around a rectangular conference table discussing strategies for the legal battle they’d helped ignite with companies that make, distribute, and sell opioids.

Aided by the lawyers in the room (and others, including high-profile and high-profiting alumni of the tobacco wars, such as Joe Rice and Steve Berman), 10 states and dozens of cities and counties have sued companies including Purdue Pharma, Endo, and Johnson & Johnson’s Janssen Pharmaceuticals—beginning in 2014 but mostly in the past few months. (Forty state AGs have launched preliminary investigations as a way to gauge the viability of litigation.) The suits allege that the companies triggered the opioid epidemic by minimizing the addiction and overdose risk of painkillers such as OxyContin, Percocet, and Duragesic. Opioids don’t just cause problems when they’re misused, the suits argue: They do so when used as directed, too.

The opioid epidemic cost the U.S. economy $78.5 billion in 2013, according to the U.S. Centers for Disease Control and Prevention, a quarter of which was paid by taxpayers through increased public costs for health care, criminal justice, and treatment. The industry, the suits contend, should bear the financial burden of this wreckage.

Paul Hanly Jr., a Manhattan attorney who’s filed on behalf of almost a dozen cities and counties, opened the discussion at the Fairmont with lessons from previous suits. P. Rodney Jackson, a lawyer from West Virginia, got heads nodding with his recommendation that suits targeting manufacturers should be amended to add distributors who sell pills to pharmacies. A retired agent from the Drug Enforcement Administration, one of several consultants, laid out the fines that distributors and pharmacies have already paid after failing to follow federal requirements to report suspiciously large pill orders.

Officially, Moore’s name is listed only on cases filed by Mississippi, which was the first state to sue, and Ohio. But this belies his outsize role in convening the like-minded while envisioning the long-term, big-picture strategy. “We’re trying to build coalitions, because it won’t get done with me and our little team,” he says, referring to a core group of longtime friends that includes former Arizona Attorney General Grant Woods, the first Republican AG to join the anti-tobacco crusade, and Chip Robertson, a former chief justice of the Supreme Court of Missouri who helped his state sue tobacco companies.

“If you ask Big Pharma right now, Mike Moore is the devil”

Just as he did during the tobacco-litigation era, Moore has been traversing the country to recruit people to his cause. His trip to Washington was one of more than 50 he estimates he’s taken in the past six months to meet with hundreds of private attorneys, about 30 AGs, and professionals in law enforcement and public health. An alumnus of Ole Miss, where he wore his hair long and jammed on a synthesizer in a rock band, Moore’s expertise is in glad-handing and dealmaking. “My talents are not writing briefs, they are not researching the law,” he says. “I know people. I know how to deal with people. I treat people fairly.”

Moore and his allies hope to corral at least 25 states to exert enough pressure, collect enough evidence, and drive potential damages so high that it will be cheaper for opioid manufacturers to back down. They’re confident that the epic scale of the crisis ravaging the country has gotten too big to dodge. What was once considered a problem only among the Appalachian poor now touches every demographic. The most recent data, from 2015, show the opioid death toll exceeded 33,000 that year.

The goal, according to Moore, isn’t to simply win a pile of money to be allocated haphazardly into government coffers. One of his regrets from the cigarette windfall is that some of the money didn’t go where intended. This time, he wants a comprehensive, company-funded national program that would make treatment more widely available—currently just 1 in 10 addicts has access—as well as expand prevention education and force a change in doctors’ prescribing habits. Despite having fallen since its 2010 peak, the number of opioid prescriptions in 2015 was three times what it was in 1999, the CDC says.

“Litigation is a blunt instrument; it’s not a surgical tool,” Moore says. “But it provokes interest quicker than anything I’ve ever seen.”

While the government lawsuits filed so far target combinations of drug companies, they consistently single out Purdue. With its aggressive marketing of OxyContin—the Kleenex or Google of opioids—Purdue established the market as we know it and invented many of the practices the government suits now seek to frame as unlawful.

Tenacious promotion is woven into Purdue’s DNA. In 1952 three brothers, Arthur, Mortimer, and Raymond Sackler, all psychiatrists, bought a little-known laxative maker in New York. From it they built the modern Purdue, still a family-owned company. During those early years, Arthur Sackler pioneered now-common pharmaceutical marketing techniques—for example, sending “detailers,” or specialized salesmen, to pay calls directly on physicians.

As recently as a quarter-century ago, few doctors prescribed the opium-derived drugs (and synthetic versions of them) for chronic pain related to backaches, headaches, or arthritis. This class of medications was distributed primarily to postoperative patients and those dying of cancer. That wasn’t much of a market, though. In the late 1980s a handful of researchers and pain doctors began to argue that pain was vastly undertreated, and one company more than any other—Purdue—grabbed the opportunity. Almost single-handedly, it turned what had been a niche product into one of the most prescribed classes of drugs.

Outspoken experts such as Dr. Russell Portenoy, a New York-based pain specialist, argued in journal articles and Purdue-paid talks to doctors that opioids weren’t inherently addictive and could safely be prescribed over extended periods. In 1995 the American Pain Society, a Purdue-funded group over which Portenoy later presided, urged physicians to monitor pain as a “fifth vital sign,” along with blood pressure, body temperature, pulse, and respiration. In 1996, Purdue unveiled OxyContin, which paired oxycodone, an opium derivative, with Continus, a time-release formula. Approving the pill, the U.S. Food and Drug Administration accepted Purdue’s contention that because the drug entered the bloodstream gradually, it wouldn’t cause the surging highs and subsequent lows that kindle addiction.

“If a patient’s doctor does not prescribe what, in the patient’s view, is a sufficient dosage of opioids, he or she should find another doctor who will”

Purdue put its full energy into selling OxyContin, according to a U.S. Government Accountability Office report in 2003. The company doubled the number of detailers devoted to the drug, from 318 in 1996 to 767 in 2002. Total annual cash bonuses tied to sales soared from $1 million to $40 million. Purdue directed its reps to call on primary care physicians, despite their scant training in the treatment of serious pain. In videos and publications, it relied on a dubious statistic—that only 1 percent of patients treated with narcotics would become addicted—even though the figure came not from a peer-reviewed scientific study, but from a one-paragraph 1980 letter to the editor in the New England Journal of Medicine. The company gave away OxyContin-branded fishing hats, plush toys, and golf balls. Detailers handed out big-band music CDs titled Swing in the Right Direction with OxyContin, and 34,000 coupons for a free one-time prescription.

Purdue also embraced a questionable condition called “pseudoaddiction,” which holds that behaviors normally associated with addiction—requesting drugs by name, displaying a demanding or manipulative manner, or seeking out more than one doctor to obtain opioids—might be signals that a patient needs more pain medication, not less. The concept was promoted in a 2007 publication called Responsible Opioid Prescribing, distributed by the Federation of State Medical Boards and co-sponsored by Purdue. It had been coined almost two decades earlier by a pain doctor named J. David Haddox. He became a Purdue employee in 1999 and remains vice president for health policy. Purdue declined to make him available for comment, but company spokesman Robert Josephson contends that the FDA takes the concept seriously. OxyContin’s FDA-approved label says “preoccupation … with achieving adequate pain relief can be appropriate behavior in a patient with poor pain control.”

The tactics worked. OxyContin sales rose from $45 million in 1996 to more than $1.5 billion in 2002. But the drug’s huge success as a treatment for long-term chronic pain—and much of the marketing that drove it—had no basis in meaningful science, according to Andrew Kolodny, a physician and co-director of opioid policy research at the Heller School for Social Policy and Management at Brandeis University. There was no controlled, double-blind research—and there’s none still—that supports the notion that opioids are effective for treating chronic pain over a period of many months, let alone years. “For the vast majority of patients, the known, serious, and too-often-fatal risks far outweigh the unproven and transient benefits,” the CDC said in 2016.

States have tried to legally challenge opioid marketing practices, aiming mostly at Purdue, since at least 2001. But these earlier attempts produced only modest, piecemeal settlements—including $10 million for West Virginia in 2004, and $19.5 million for 26 states and Washington, D.C., in 2007.

In private practice, Moore was involved in a cluster of suits instigated in 2003 against Purdue by people who claimed they or loved ones got hooked on prescription opioids despite obtaining them legally and taking them as directed. In conducting his investigation, Moore visited pain clinics and interviewed users, doctors, and people who’d advertised and marketed the company’s drugs. The effort ended in 2007 when claimants, represented by lawyers including Hanly, the Manhattan attorney, settled for $75 million. Purdue admitted no wrongdoing, and the court agreed to keep the corporate documents gathered in discovery confidential. The case may not have done much to waylay Purdue, but it did give Moore early insight into how opioid litigation could work and helped him establish connections with attorneys who are now among the most active filers.

In a federal criminal prosecution, also resolved in 2007, Purdue and three of its top executives pleaded guilty to “misbranding” OxyContin and collectively agreed to pay some $630 million in civil and criminal penalties. The company specifically acknowledged that it trained its sales representatives to mislead physicians about opioid risks. Purdue emphasized that its plea covered misconduct only from 1995 through 2001. “We accept responsibility for those past misstatements and regret that they were made,” the company said.

More than a dozen years of scattershot litigation “accomplished absolutely zero” in terms of preventing or stemming the crisis, says Woods, the former Arizona AG and Moore ally. “Some lawyers made money. States put some money in coffers. But the problem is greater today than it’s ever been.” The difference this time, Woods and his colleagues say, is that such a large group will pool their resources and evidence.

Most of the current lawsuits target multiple companies based on the allegation that while Purdue pioneered misleading marketing tactics, its competitors subsequently replicated them as sales of OxyContin exploded. The complaints charge that Purdue and its rivals never stopped their alleged campaign of misinformation carried out by means of industry-funded experts and pamphlets, online publications, and medical educational programs. (Josephson declined to comment on any of Purdue’s marketing tactics, citing the pending litigation.)

Portenoy, the Purdue-affiliated pain doctor, recanted publicly in 2011, conceding that research he relied on to push his and Purdue’s pro-opioid campaign didn’t prove anything about the treatment of chronic pain. (He wrote in an email that no one “anticipated the widespread overdosing and medication misuse we see today.”) He and other industry-funded physicians, described as “key opinion leaders,” are named as defendants in a handful of the current government lawsuits.

Ohio is representative of how lethal and costly the opioid epidemic has become and how the government lawsuits work. In 2012 prescriptions reached a peak, 793 million opioid doses, according to state statistics—enough to medicate every resident with 68 pills apiece. Half of the state’s foster-care population is made up of children with opioid-addicted parents, and the rate of babies born addicted to opioids grew almost eightfold from 2006 to 2015. In 2014, Ohio Attorney General Mike DeWine, a Republican, began considering litigation. With his own office lacking manpower and expertise, he invited pitches from a half-dozen teams of outside lawyers. Moore’s group won the assignment.

Filed in May in state court, Ohio’s suit accuses drugmakers of “borrowing a page from Big Tobacco’s playbook” by concealing addiction risks. According to the state, Purdue, Teva Pharmaceutical Industries, Janssen, Endo, and Allergan invested millions to change attitudes about opioid prescribing. Janssen distributed a patient education guide calling opioid addiction a “myth,” for example, while Endo advertised that an abuse-deterrent reformulation of one of its most popular opioids, Opana ER, made it crush-resistant, despite its own studies disproving that claim. From 2001 through 2015, Purdue hosted the website inthefaceofpain.com, which promoted “the notion that if a patient’s doctor does not prescribe what, in the patient’s view, is a sufficient dosage of opioids, he or she should find another doctor who will.”

Ohio accuses the companies of creating a public nuisance, violating state laws against unfair sales practices, and committing Medicaid fraud by spurring unnecessary prescriptions that the state reimbursed. The conduct dates to at least 1996 and continues through the present, says Jonathan Blanton, who heads the AG’s consumer protection unit. The companies, DeWine says, have reaped unjust profits while devastating communities and fueling a heroin resurgence. “It’s clear they’re not going to be part of the solution unless we drag them to the table.”

Like most of the current lawsuits, Ohio’s complaint isn’t specific about how much money it aims to recoup. But Ronny Gal, an analyst at Sanford C. Bernstein & Co., views the litigation as a material threat to companies, with potential aggregate damages “in the many billions.”

While the evidence marshaled by Ohio and other plaintiff governments is compellingly grim, whistleblowers and smoking-gun documents would help turn these suits into tobacco-scale winners. Moore predicts that insiders willing to testify are bound to materialize as plaintiffs’ lawyers continue to investigate. Jeffrey Wigand, a star whistleblower (and subject of The Insider), didn’t emerge until a year after Moore filed suit on behalf of Mississippi in 1994.

Denying any wrongdoing, all of the companies say they want to help resolve the crisis, but not through litigation, which they call wasteful and unfair. “We firmly believe the allegations in these lawsuits are both legally and factually unfounded,” Janssen spokesman William Foster says in a representative statement. “Janssen has acted responsibly and in the best interests of patients and physicians with regard to these medicines.” The only company willing to discuss the litigation on the record—as opposed to issuing a boilerplate statement—is Purdue. It declined to make any executives available for interviews or allow a reporter to visit its headquarters in Stamford, Conn., but it dispatched Josephson and an outside lawyer to discuss the cases. Purdue has the most to lose: More than half of its revenue comes from opioids, Josephson says. It doesn’t release financial information, but Sanford C. Bernstein & Co. estimates that OxyContin alone generated sales of $1.3 billion in 2016. (Opioid sales overall totaled $8.6 billion last year, up from $1.1 billion in 1992, according to Quintiles IMS Holdings Inc.) Of drugs made by the other four most commonly named defendants in the government suits, the next biggest was Johnson & Johnson’s Duragesic (fentanyl), with sales of $288 million. J&J derives 0.4 percent of its revenue from opioids and could stop making them tomorrow with barely any impact on its bottom line.

A key defense that Purdue and the other opioid makers have to deploy involves causation. The companies contend that between the time a manufacturer sells pills to a wholesaler and when those pills cause social harm, several other actors—pharmacies, prescribing doctors (some negligent or even criminal), drug abusers, and pill traffickers—break the chain of causation. Suits filed by municipalities against firearm manufacturers in the late 1990s failed, in part, because some judges ruled that gunmakers shouldn’t be held liable for the misuse of their otherwise lawful products. For a pistol to be misused, another actor—a criminal, a suicide, or a curious child—has to intervene and pull the trigger. Similarly, when opioids are misused, blame should rest elsewhere, says Mark Cheffo, one of Purdue’s outside lawyers.

“When this is all said and done, all the companies will be sued one way or the other”

Purdue and its rivals also argue that the evidence, even if incriminating, is too old. In the opioid cases, many of the allegations are based on events—such as the publication of suspect medical literature—that took place 10 years or more in the past, beyond some states’ statutes of limitations on proving fraud. Josephson says the company hasn’t received an FDA warning letter about its marketing since 2003—“14 years!” he adds for emphasis. He also complains that the suits fail to give Purdue credit for switching in 2010 to a new “abuse-deterrent” version of OxyContin that’s more difficult for addicts to crush, break, or dissolve. On its website, the company calls itself “the new Purdue Pharma,” which “has learned from the past and is focused on the future.” It says it’s investing in research and development for non-opioid pain medication, has widely disseminated the CDC guidelines for prescribing among doctors and pharmacists, and joined with the National Sheriffs’ Association in an $850,000 program to provide naloxone kits and training for police officers.

Another defense is that the states and localities should really be suing the makers of generic painkillers. Of the roughly 234 million annual opioid prescriptions, only 4 million, or 1.7 percent, are for Purdue drugs. “We don’t see how you solve this problem when you don’t have the biggest players involved,” Josephson says.

While generic medicines cause harm, they generally aren’t promoted, Moore says. Going after the branded manufacturers makes sense because they created the environment in which generics later thrived. Even so, he adds, “When this is all said and done, all the companies will be sued one way or the other.”

Moore’s nephew first became acquainted with opioids at 26, after he woke up from a four-day medically induced coma following an altercation with his then-girlfriend that ended with him being shot in the chest with his own .45. Neither party filed charges, and his recollection of the night is so hazy he doesn’t know who pulled the trigger. The gunshot caused extensive damage to his subclavian artery and surrounding nerves that would require almost 30 operations.

Doctors administered intravenous morphine while he was in intensive care; once at home, he received prescriptions for various combinations of Percocet, Norco, Dilaudid, fentanyl, and Demerol. About a year and a half later, while working full time as a manager at a Nissan auto plant in Jackson, he began finishing a month’s worth of medication after only three weeks, then two weeks, as his tolerance increased. Soon he was turning to the black market for Lortabs, hydrocodone, and fentanyl patches. At one point, during an appointment to which Moore accompanied him, a doctor assured him that he suffered from pseudoaddiction—and needed not fewer opioids, but more.

After seven years, two stints in detox, and dozens of trips to the hospital following overdoses or suffering from debilitating withdrawals, he says it was his move to Mississippi’s Gulf Coast to be closer to family that enabled him to gain some control over his addiction. He’s now 37. Despite his history, he still has a prescription for the opioid Opana IR, which he’s convinced he can use sparingly because his fear of going through withdrawal again is greater than his desire for the drug.

Moore acknowledges that weak regulation, lax prescribing practices, and abuse play a role in his nephew’s and the nation’s addiction problem. “But a huge part of it is because of the externalities of greedy companies. It wasn’t enough to make this much money,” he says, holding his hands a foot apart. “They wanted to make this much money,” he says, widening his arms as far they’ll go.

“If you ask Big Pharma right now, Mike Moore is the devil,” says Robertson, the former chief justice of Missouri. “But they haven’t talked to him. And when they sit down, he’s going to walk in and say, ‘We’ve got a business problem. Let’s figure out a business solution.’ ”

Moore is confident that the opioid industry will be driven to negotiate for the same reasons tobacco companies were: to end the demonization and obtain financial predictability. “The vilification of this industry has not even begun yet,” he says. “In other words: This litigation will vilify them. It won’t make the companies look like they’re legitimate businesspeople. It’ll make them look like they took advantage and made billions of dollars on lots of people who died from their products. And they can claim misuse and abuse all they want to—it’s too many.”

How Do You Sue a Self-Driving Car?

By: John Freund

In May 2016, Joshua Brown was driving – or more accurately, “operating” – a Tesla Model S, when his vehicle struck a Semi and Brown was killed. Brown wasn’t technically “driving” because his Tesla was set to autonomous mode, meaning the vehicle was driving itself.

Brown’s death and his family’s impending lawsuit bring up a host of questions surrounding blame in accidents caused by self-driving cars. Who gets sued in these scenarios? The manufacturer? The tire company? The software maker? The drivers who touched “Agree” on their startup screens?

As Car and Driver reports, automation seems destined to shift the blame of road accidents from drivers to carmakers or equipment manufacturers, which means that our current legal framework of product liability must adapt to the new technology.

Fortunately tort law has a lengthy track record of addressing the complex interactions between humans and machines. Proponents of letting courts sort out the legal complexities argue that self-driving cars are essentially no different from previous technological advancements. Yet concerns that corporate liability fears may delay the introduction of life-saving driverless technologies have prompted alternative theories of liability which preempt the tort system.

In Brown’s case, his attorney could argue that Tesla was negligent in its design of a system that did not shut itself off after repeated warnings to the driver were ignored (by Brown himself), or that Tesla misrepresented the capabilities of the Autopilot feature, or even that Tesla should be held strictly liable, meaning that the inherent danger of its Autopilot system automatically implicates the company.

Those types of arguments are pushing tort reform advocates to promote solutions like Federal safety standards for autonomous vehicles, which will shield manufacturers from liability. Other proposals include no-fault insurance or an accident compensation fund.

It will no doubt be a bumpy road from here to there – wherever ‘there’ ends up being. Here’s hoping our legal system keeps both hands on the wheel, as opposed to letting the car drive itself.

East Texas county sues drug companies, alleges role in opioid crisis

By: Jim Malewitz

An East Texas county is suing a slew of prescription painkiller manufacturers and distributers in federal court, accusing them of fueling an opioid addiction epidemic that has gripped communities across the nation — in part by allegedly inflating the drugs’ benefits in treating chronic pain and downplaying the addiction risks.

In filing the lawsuit, Upshur County became the first of what could be more Texas governments to seek financial damages from companies alleged to have played a role in the opioid crisis.

Lawsuits are also expected from the East Texas counties of Bowie, Delta, Hopkins, Lamar, Red River and Smith, lawyers representing those governments — and Upshur County — said Wednesday.

The development comes as Attorney General Ken Paxton has inserted Texas into a 41-state investigation of companies that manufacture or sell opioids. Last month the states served investigative subpoenas or other requests to eight such companies and their affiliates, including some named in Upshur County’s lawsuit.

Defendants in the Upshur County challenge, filed in U.S. district court in Marshall, include: Purdue Pharma, Endo Pharmaceuticals, Pfizer, Janssen Pharmaceuticals, Teva Pharmaceuticals, Allergan, AmerisourceBergen Corporation, Cardinal Health, McKesson Corporation, Abbott Laboratories and Johnson & Johnson.

Opioids are a family of drugs including prescription painkillers like hydrocodone, as well as illicit drugs like heroin.

Prescription and illegal opioids account for more than 60 percent of overdose deaths in the U.S., a toll that has quadrupled over the past two decades, according to the U.S. Centers for Disease Control. Drug overdose deaths in 2015 far outnumbered deaths from auto accidents or guns.

Texas saw 1,186 opioid-related deaths in 2015, while the nation as a whole had 33,000 such deaths that year. Researchers have flagged opioids as one possible factor in Texas’ staggering rise in women’s deaths during and shortly after pregnancy.

In its lawsuit, Upshur County argues it “has spent and continues to spend large sums combatting the public health crisis created by Defendants’ negligent and fraudulent marketing campaign,” and is seeking an unspecified amount in damages.

“There is no denying that we have an opioid crisis in America, and that the human misery and financial damage it causes is enormous,” said Jeffrey Simon, co-founder of Simon Greenstone Panatier Bartlett, who is representing Upshur County in the suit. “Although accidental overdoses have become the leading cause of death for Americans under the age of 50, the pharmaceutical industry has not been fully held accountable for its role in creating this epidemic.”

The drug companies refuted the allegations on Wednesday and pointed to policies that they said deter painkiller abuse.

“The people of Cardinal Health care deeply about the devastation opioid abuse has caused American families and communities and are committed to helping solve this complex national public health crisis,” said Geoffrey Basye, a spokesman for Cardinal Health. “We will defend ourselves vigorously in court and at the same time continue to work, alongside regulators, manufacturers, doctors, pharmacists and patients, to fight opioid abuse and addiction.”

In its own statement, Purdue Pharma said: “We are deeply troubled by the opioid crisis and we are dedicated to being part of the solution. … We vigorously deny these allegations and look forward to the opportunity to present our defense.”

Simon, the attorney representing Upshur County, said his lawsuit would not interfere with the states’ investigation of companies involved in manufacturing and distributing opioids.

“There is no direct relationship with the investigation that AG Paxton has joined,” he said in an email. “Both will work in parallel, but the more information that is developed through the combination of these efforts, the better the public is served by revelation of the truth.”

Lawsuit Abuse Awareness Week starts, tort reform groups remind Texans lawsuit abuse prevention ‘starts with you’

By: David Yates

AUSTIN –The first week of October marks Lawsuit Abuse Awareness Week, which is recognized by Citizens Against Lawsuit Abuse and grassroots groups across the country that support legal reform.

The annual event serves to educate citizens about the cost and consequences of lawsuit abuse and reminds Texans that preventing lawsuit abuse “starts with you,” a press release states.

“While Texas has enacted strong lawsuit reforms, we know that you can’t legislate personal responsibility,” said Sergio Contreras, executive director of the Rio Grande Valley CALA. “It’s up to us to be smart legal consumers, show up for jury service and call out legal abuse when we see it.”

During LAAW, which runs until Oct. 6, CALAs across the state will participate in a social media campaign aimed at shining a light on some of the lawsuit reform successes and highlighting industries where lawsuit abuse still exists.

“LAAW is a great time to remind people that we all suffer when our legal system is abused,” said Jennifer Harris, executive director of Texans Against Lawsuit Abuse. “Courts become clogged with frivolous lawsuits, and ultimately the cost of these expensive lawsuits gets passed down to the consumer.”

LAAW arrives a month after House Bill 1774 and House Bill 1463 went into effect. Both laws are aimed at ensuring access to our courts and reining in lawsuit abuse, while preserving Texans’ right to sue, a press release states.

“After Harvey we saw legitimate information about HB 1774 being drowned out by misinformation from personal injury lawyers and their allies seeking to generate new cases and use our courts for greed, not justice,” added Harris.

“We encourage Texans to seek counsel from verifiable and credible sources,” added D’Anne Buquet, Executive Director of the Bay Area CALA. “Remain vigilant against misinformation and think twice before you sue.”

Dallas as the anti-Seattle? A pro-business climate may help Texas land Amazon’s HQ2

By: Mitchell Schnurman

Cities around the country were thrilled after Amazon said it was searching for a second headquarters location, but the Seattle establishment was shaken.

This “should serve as a wake-up call for the region,” the president of the Seattle Metro Chamber said in a statement.

And it “should come as no surprise,” she said, because “the city has continued to implement policies that create an environment that is at best unfriendly, and at worst, outright hostile toward the needs of our largest employers.”

That sounds harsh, especially from a pro-business group that promotes the region, but it’s a common conclusion. From a $15 minimum wage to mandates for paid sick leave to proposals for a capital gains tax, the regulations just keep coming in Seattle and Washington state.

In June, a soda tax was approved with a levy that’s eight times higher than one for beer. In July, an ordinance took effect that restricts scheduling changes at large restaurants and retailers and can require more pay for workers whose hours are extended or cut.

This summer, Seattle unanimously approved an income tax on earnings over $250,000, even though it was sure to provoke a legal challenge because Washington does not have a state income tax.

“It won’t be lost on historians that two months after City Hall cheered itself for ‘taxing the rich,’ Amazon chose to seek a ‘stable and business-friendly environment’ for its next act: A $5 billion investment and 50,000 new jobs,” wrote the editorial board of The Seattle Times.

A proposal for a head tax on workers in the city was adopted a decade ago, only to be repealed. But it keeps coming back.

“What have Seattle businesses done to deserve still more bills?” wrote the CEO of the Washington Retail Association last year after the head tax was put in play again.

Compare that approach with the pro-business policies in Texas. Tort reform, right-to-work laws, a low minimum wage, deregulation and light regulation are among the factors that make Texas a perennial top choice for corporate expansion and relocation.

In annual surveys of top corporate executives, Texas has been named the best state for business for 13 consecutive years. Washington ranked 39th in this year’s report in Chief Executive magazine.

Amazon has outlined a long list of attributes for what it’s calling HQ2, although it’s not clear which ones matter most. The more weight that’s given to the business climate, the better the chances for Dallas, Austin and other Texas metros.

It’s important to note that other major metros can brag about their own pro-business practices. Georgia, for instance, ranked No. 8 among the best states, bolstering Atlanta’s prospects. And Denver, considered a favorite, can tout 13th-ranked Colorado, which also has a cool factor that helps in recruiting.

The question is whether Amazon will be looking for an anti-Seattle, at least on the regulatory front.

Amazon didn’t air any grievances with its hometown in announcing the search for a second headquarters. Still, long-time observers distilled some deeper messages in the announcement and location documents, suggesting that Amazon wasn’t merely outgrowing the space in Seattle.

Part of what it’s looking for: “elected officials eager and willing to work with the company,” according to Amazon’s request for proposals.

“That’s a backhanded way of saying they’re not able to work with the establishment in Seattle,” said Paul Guppy, vice president of research for the Washington Policy Center, a conservative think tank in Seattle.

In general, employers in the Northwest are liberal about social issues, including benefits for same-sex couples and paid family leave, he said. But the constant stream of new requirements can be expensive and time-consuming.

“Employers are definitely fed up, but they’re very reluctant to say so, because they don’t want to be cast as mean capitalists,” Guppy said.

When some restaurant owners criticized the big jump in the minimum wage and warned that it would lead to fewer jobs, they faced a firestorm of criticism online. So they went silent, he said.

Texas has put its business-friendly brand at risk recently. This year, lawmakers adopted a law to prohibit sanctuary cities and repeatedly tried to pass a bill to restrict bathroom choices for transgender people.

Many employers, including Amazon, spoke out forcefully against the “bathroom bill” and managed to hold off the legislation. Amazon and its founder and CEO, Jeff Bezos, are clearly at odds with Texas political leaders on immigration, LGBT rights and climate change. But that may not be insurmountable.

“Controversial social issues come and go,” Guppy said. “But tax rates, mandated benefits, the business climate — those really hit the bottom line. They’re permanent and they’re real.”

Amazon said that it wants HQ2 to be the full equal of its Seattle base. Senior leaders will decide where to locate their teams, and employees are expected to have an option to move if they prefer.

If cost of living matters a lot, Dallas has a significant edge.

Kriss Sjoblom, senior economist at the Washington Research Council, expects Texas sites — perhaps both Austin and Dallas — to make the shortlist.

“There’s no state income tax and no inheritance tax,” he said, and no plans for new taxes.

In contrast, Washington already has the nation’s biggest estate tax, up to 20 percent.

For workers at a company like Amazon, that could make a difference.

Woman sues T&T World Nail Supply after bottle of polish breaks in hand

By: David Yates

BEAUMONT – Just about everyone has seen a film where a female actress complains about breaking a nail while escaping danger, but how many people can claim they’ve seen someone have a bottle of “dangerous” nail polish break and splinter into their hand while on the job?

Sarah Gibbins is claiming that’s exactly what happened to her and has filed suit against Signature Nail Systems and T&T World Nail Supply.

According to her lawsuit, on May 19 Gibbins was working at A Cut Above in Orange. She was injured when a bottle of gel top coat “broke and then splintered into” her hand and finger, cutting the skin, muscle, tendons and ligaments.

Gibbins was rushed to the emergency room where pieces of the splintered glass were excised from her hand. Plastic surgery was later performed to help reduce the scarring.

The defendants are accused of designing, marketing and placing the “unreasonably dangerous and defective product” into the stream of commerce, the suit states.

The defendants were also allegedly negligent in “failing combining the product into the packaging” and in failing to warn her that the bottle could break.

Furthermore, Gibbins is claiming the defendants were grossly negligent and is suing them for exemplary damages.

She is also suing for her past and future medical expenses, lost earnings, pain, mental anguish, impairment, disfigurement, loss of consortium and loss of household services.

Gibbins’ husband, Sam, is also named as a plaintiff.

Beaumont attorney Gilbert T. Adams III represents them.

The suit was filed Sept. 1 in Jefferson County District Court.

Case No. B-200598

Rejection Of Subway “Footlong” Settlement Highlights Absurd Incentive Of Class Actions

By: Cory L. Andrews

In early 2013, when Australian teenager Matt Corby took to social media to share a photo of his recently purchased Subway “foot long” sandwich next to a tape measure revealing that the sandwich measured only 11 inches in length, he never could have anticipated the “viral” chain of events that he had just set into motion.

Other Subway customers and media outlets soon descended on Subway franchises to undertake their own sandwich measurements, prompting the New York Post to announce that “Some Subway ‘Footlong’ Subs Don’t Measure Up.”   According to the Post, four out of seven footlong sandwiches randomly purchased at Subway restaurants in Manhattan, Brooklyn, and Queens measured less than 12 inches in length (ranging from 11 to 11.5 inches).

The plaintiffs’ bar, not exactly known for letting any litigation opportunity go to waste, immediately pounced and—within days of Corby’s initial photo—class-action lawsuits sprang up across the country. Nine class actions, primarily brought under state consumer protection laws that prohibit “deceptive” or “unfair” business practices, were eventually consolidated for multidistrict litigation (MDL) in the Eastern District of Wisconsin.

But then the class-action juggernaut quickly hit a roadblock. Discovery revealed that the vast majority of Subway footlong sandwiches were, in fact, 12-inches in length. But due to perfectly natural and unavoidable vagaries in the baking process, a very small fraction of sandwiches fell about a quarter-inch shy of 12 inches. But Subway’s pre-packaged dough sticks all weighed exactly the same, so even those footlong sandwiches measuring less than 12 inches contained precisely the same amount of bread as every other footlong sandwich.

Because the vast majority of Subway footlong sandwiches measured 12 inches in length, certifying a damages class under Rule 23(b)(3) would not be possible. Instead, individualized hearings would be required to determine which customers had purchased “undersized” sandwiches. Of course, because most Subway customers ate their sandwiches without measuring them, only a handful would be able to prove the length of their sandwiches. And because no customer actually received less bread, no matter the length, proof of any actual injury would be nearly impossible to establish.

If you guessed that the plaintiffs’ attorneys might voluntarily dismiss their suits as lacking in merit, then you guessed wrong. Instead, they amended the consolidated complaint to seek only injunctive relief and then sought to certify an injunction class under Rule 23(b). Under such a class, although the handful of named plaintiffs may be entitled to receive modest incentive awards, the vast majority of class members would be ineligible for any monetary recovery. The plaintiffs’ attorneys, however, would still be allowed to seek fees vastly out of proportion with the work performed..

Following mediation and after prolonged haggling, the parties finally agreed to a proposed settlement whereby Subway agreed to a number of quality-control protocols to ensure, to the extent possible, that its footlong sandwich bread measured 12 inches long. In addition, each of 10 named plaintiffs would receive a $500 incentive award and class counsel would be awarded $520,000 in attorney’s fees.

Although the district judge preliminary approved the settlement, one absent class member objected to the settlement and class certification on the basis that the settlement didn’t materially benefit the class and was essentially worthless.

The district court disagreed, certifying the class and approving the settlement, but a panel of the US Court of Appeals for the Seventh Circuit recently overturned that decision. Writing for a unanimous panel, Judge Diane Sykes quoted now-retired Judge Richard Posner’s colorful observation that a class action that “seeks only worthless benefits for the class” and “yields [only] fees for class counsel” is “no better than a racket” and “should be dismissed out of hand.”

Reversing the district court, the panel agreed with the objector’s claim that because the settlement admitted that uniformity in bread length is impossible due to vagaries in the bread-baking process, the procedures required by the settlement would not benefit the class in any meaningful way. “After the settlement, just as before, the rare sandwich that falls short of the full 12 inches will still provide the customer the same amount of food as any other,” Judge Sykes wrote.

The Seventh Circuit panel reversed the district court and remanded the case with instructions to dismiss the consolidated class actions, which “yields fees for class counsel” and “zero benefits for the class.”

But it does not appear that the case will end there. Only five days after the Seventh Circuit issued its opinion, counsel for the named plaintiffs informed the district court of their intentions to go forward, based on what they claim is “newly discovered information.” In particular, plaintiffs claim they can prove that Subway’s bread vendors were providing the company with underweight frozen bread sticks.

Earlier this week, they filed an affidavit with the court from an employee of one of Subway’s vendors who claims that some pre-packaged dough sticks provided to Subway were as short as 9 inches. Plaintiffs’ counsel asserts that the Seventh Circuit “would have reached the opposite conclusion” had it known the true facts.

The plaintiffs’ bar is well-aware of the coercive power of class certification. Few defendants continue to litigate after classes are certified because, by that point, the pressure on defendants to settle even frivolous suits is often overwhelming. Even though it now appears that Subway’s general counsel may continue to be tied up with many more years of discovery and protracted litigation over its footlong sandwiches, this case already perfectly illustrates how the class-action device incentivizes abusive lawsuits designed to extract in terrorem settlements.

It will be worth monitoring the next phase of the district court proceedings to see if the plaintiffs’ allegations measure up.

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All rights reserved.
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