FILE - This Tuesday, May 8, 2007, file photo shows the Purdue Pharma logo at its offices in Stamford, Conn. Arizona’s attorney general is asking the U.S. Supreme Court to force the Sackler family, which owns OxyContin-maker Purdue Pharma, to return billions of dollars they took out of the company. The court filing on Wednesday, July 31, 2019, marks the first time the high court has been asked to weigh in directly on the nation’s opioid crisis. (AP Photo/Douglas Healey, File)

FILE - This Tuesday, May 8, 2007, file photo shows the Purdue Pharma logo at its offices in Stamford, Conn. Arizona’s attorney general is asking the U.S. Supreme Court to force the Sackler family, which owns OxyContin-maker Purdue Pharma, to return billions of dollars they took out of the company. The court filing on Wednesday, July 31, 2019, marks the first time the high court has been asked to weigh in directly on the nation’s opioid crisis. (AP Photo/Douglas Healey, File)

Purdue Pharma pleas could bolster efforts for Canadian opioid class action

In Canada, provincial officials have pushed for victims here to be similarly compensated by Purdue

A Canadian class action against opioid makers will start the process of getting certified in a hearing next month, a key test on how courts here will handle a case that is making waves in the U.S.

The upcoming hearing in Quebec comes after this week’s news that Purdue Pharma, the company behind OxyContin, will plead guilty to federal criminal charges in the U.S.

While the company’s pleas won’t directly play into Canadian litigation, lawyers are hopeful that the company’s admissions will help bolster their cases.

Purdue’s Canadian entities are also among the 34 parties in a proposed class action lawsuit in Quebec. Mark Meland, a lawyer at Fishman Flanz Meland Paquin LLP in Montreal who is working on the case, said preliminary hearings begin in November in preparation for an official certification decision early next year. Certification is when a judge greenlights a class action case to go forward in court.

“While the guilty plea in the U.S. does not have a direct impact on the Quebec proceedings, the admissions made by Purdue US of its role in a conspiracy to mislead the public about the risks of using opioids are consistent with the allegations made in the Quebec class action proceedings, and gives credence to the allegations that similar activities would have taken place in Quebec and Canada,” said Meland.

Purdue’s guilty pleas in the U.S. are part of a settlement of more than $8 billion and include charges of conspiracy to defraud the United States and violating federal anti-kickback laws.

Under the U.S. agreement, Purdue will become a public benefit company, meaning it will be governed by a trust that has to balance the trust’s interests against those of the American public and public health, U.S. officials said.

In Canada, provincial officials have pushed for victims here to be similarly compensated by Purdue and other pharmaceutical companies.

There is the Quebec case, which has its preliminary hearingnext month. A separate British Columbia lawsuit was launched in August 2018 on behalf of all provincial, territorial and federal governments to recover government health care and other costs of opioid-related illnesses.

Ontario, Alberta, Saskatchewan, Newfoundland and Labrador, and Nova Scotia have agreed to join the suit against 40 manufacturers, wholesalers and distributors of opioids in Canada. Manitoba lawmakers this month put forth a bill to join British Columbia’s suit.

Reidar Mogerman, one of the lead lawyers for the British Columbia-based class action, said that the case is in the process of scheduling its own certification hearing, but he expects the process to be lengthy and hard-fought, as the defendants have raised numerous grounds of opposition.

“The fact that there has been a criminal guilty plea by one of the central opioid manufacturers …. lends weight and will assist in our case,” said Mogerman of the Purdue announcement.

“It also shows that something really bad has happened in the opioid industry. And it needs to be rectified. It needs to be shown under the spotlight of a court case, because it tells you that this huge crisis that we have may well have been caused by unlawful conduct that needs to be prosecuted or pursued.”

U.S. officials said Purdue is admitting that it impeded the Drug Enforcement Administration by falsely representing that it had maintained an effective program to avoid drug diversion and by reporting misleading information to the agency to boost the company’s manufacturing quotas.

Purdue is also admitting to violating federal anti-kickback laws by paying doctors, through a speaking program, to induce them to write more prescriptions for the company’s opioids and for using electronic health records software to influence the prescription of pain medication.

“Purdue deeply regrets and accepts responsibility for the misconduct detailed by the Department of Justice in the agreed statement of facts,” Steve Miller, who became chairman of the company’s board in 2018, said in a statement.

Purdue’s U.S. agreement, which will be detailed in a bankruptcy court filing in U.S. federal court, comes amid an ongoing criminal investigation into the company’s owners and executives, including the Sackler family.

The bankruptcy has been recognized in the U.S. and Canadian provinces have made claims in that case, Mogerman said. This week’s pleas will impact how claims on the bankruptcy case play out, he said.

Canadian federal public prosecutors have not pursued a parallel criminal investigation to the U.S., Mogerman said. But he said there will be impacts from the U.S. investigation on the civil case, the class action.

“It is further proof that the claims have merit. We say that very similar, if not identical conduct, occurred in Canada. We say that conduct was unlawful. And we say it gave rise to harms that we can collect on in lawsuits,” said Mogerman.

“If a party admits to doing something similar in the United States, and admits that that conduct was criminal, and obviously makes our case, easier to prosecute in Canada. It doesn’t have a direct application in Canada, but it is an admission to facts that are important and relevant in Canada.”

Anita Balakrishnan, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

opioid crisis

Just Posted

(BSR) logo
Lost family of three found near Barriere

Successful effort by Barriere and Kamloops Search and Rescue brings those lost home

North Okanagan business Hytec Kohler set up a COVID-19 vaccination clinic at the Spallumcheen plant Friday, May 14. (Jennifer Smith - Morning Star)
More than half of eligible adults in Interior Health vaccinated

Over 365,000 vaccine doses have been administered throughout the Interior Health region

Doses of the Pfizer coronavirus vaccine are seen being prepared on Wednesday, May 12, 2021, in Decatur, Ga. Hundreds of children, ages 12 to 15, received the Pfizer vaccine at the DeKalb Pediatric Center, just days after it was approved for use within their age group. (AP Photo/Ron Harris)
One death, 60 new cases of COVID-19 in Interior Health

The death is connected to the outbreak at Spring Valley long-term care in Kelowna

The first Pfizer-BioNTech COVID-19 vaccine dose in Canada is prepared at The Michener Institute in Toronto on Monday, Dec. 14, 2020. THE CANADIAN PRESS/Frank Gunn
One death, 39 new cases of COVID-19 in Interior Health

There are 484 active cases of the virus in the region currently

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

A vial of AstraZeneca vaccine is seen at a mass COVID-19 vaccination clinic in Calgary, Alta., Thursday, April 22, 2021. Dr. Ben Chan remembers hearing the preliminary reports back in March of blood clots appearing in a handful of European recipients of the Oxford-AstraZeneca COVID-19 vaccine. THE CANADIAN PRESS/Jeff McIntosh
Science on COVID, VITT constantly changing: A look at how doctors keep up

While VITT can represent challenges as a novel disorder, blood clots themselves are not new

Poached trees that were taken recently on Vancouver Island in the Mount Prevost area near Cowichan, B.C. are shown on Sunday, May 10, 2021. Big trees, small trees, dead trees, softwoods and hardwoods have all become valuable targets of tree poachers in British Columbia as timber prices hit record levels. THE CANADIAN PRESS/Jen Osborne.
Tree poaching from public forests increasing in B.C. as lumber hits record prices

Prices for B.C. softwood lumber reached $1,600 for 1,000 board feet compared with about $300 a year ago

The warm weather means time for a camping trip, or at least an excursion into nature. How much do you know about camps and camping-related facts? (John Arendt - Summerland Review)
QUIZ: Are you ready to go camping?

How many camp and camping-related questions can you answer?

On Friday, May 14 at Meadow Gardens Golf Club in Pitt Meadows, Michael Caan joined a very elite club of golfers who have shot under 60 (Instagram)
Crowds at English Bay were blasted with a large beam of light from an RCMP Air-1 helicopter on Friday, May 14. THE CANADIAN PRESS/Marc Grandmaison
Police enlist RCMP helicopter to disperse thousands crowded on Vancouver beach

On Friday night, police were witness to ‘several thousand people staying well into the evening’

People shop in Chinatown in Vancouver on Friday, February 5, 2021. THE CANADIAN PRESS/Jonathan Hayward
Vancouver community leaders call for action following 717% rise in anti-Asian hate crimes

‘The alarming rise of anti-Asian hate in Canada and south of the border shows Asians have not been fully accepted in North America,’ says Carol Lee

Sinikka Gay Elliott was reported missing on Salt Spring Island on Wednesday, May 12. (Courtesty Salt Spring RCMP)
Body of UBC professor found on Salt Spring Island, no foul play suspected

Sinikka Elliott taught sociology at the university

The first Black judge named to the BC Supreme Court, Selwyn Romilly, was handcuffed at 9:15 a.m. May 14 while walking along the seawall. (YouTube/Screen grab)
Police apologize after wrongly arresting B.C.’s first Black Supreme Court Justice

At 81 years old, the retired judge was handcuffed in public while out for a walk Friday morning

Most Read