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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Langley School District is asking parents and students to prepare for the “possibility” of return to remote learning. (Unsplash photo)
District asks Langley students to prepare for ‘possibility of remote learning’

Two more schools were issued COVID-19 exposure alerts Tuesday

Suspected cocaine, opioids, cash, and ledgers were seized in raids on Nov. 21. (Langley RCMP/Special to the Langley Advance Times)
Three arrested in raid on Langley dial-a-dope ring

Police say the suspects were selling into the Aldergrove area

Langley residents took their questions and concerns to TransLink’s open house at Langley City Hall in November of 2019. (Langley Advance Times files)
LETTER: Langley MP’s SkyTrain request will go nowhere

Liberal government will ignore Conservative MP’s call for SkyTrain funding

Langley City’s Gregory Douglas snapped a picture of a rainbow over the downtown core Tuesday, Nov. 24. “Just wanted to share this beautiful view that I happened to capture today, that illustrates not only Mother Nature’s beauty,” but what an “amazing city” we live in. (Special to Langley Advance Times)
SHARE: Langley City resident discovers treasure and both ends of the rainbow

Send us your photo showing how you view Langley, and it could be featured in a future edition

Sonya Perkins of Langley’s Forever Yours Lingerie said there’ve been challenges, but customers are supporting local shops during the pandemic. (Matthew Claxton/Langley Advance Times)
‘Shop Local’ key as Langley businesses work through COVID

Business groups are trying to encourage local buying to keep stores alive

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. daily COVID-19 cases hits record 941 on Tuesday

Further restrictions on indoor exercise take effect

(Ashley Wadhwani/Black Press Media)
Refuse to follow B.C.’s mask mandate? Face a $230 fine

Masks are now required to be worn by all British Columbians, 12 years and older

Prime Minister Justin Trudeau speak to the media about the COVID-19 virus outside Rideau Cottage in Ottawa, Friday, Nov. 20, 2020. THE CANADIAN PRESS/Adrian Wyld
Canada’s inability to manufacture vaccines in-house will delay distribution: Trudeau

First doses of COVID-19 vaccine expected in first few months of 2021, prime minister says

Beaver Creek RCMP Cpl. Robert Drapeau, left to right, Gary Bath, Lynn Marchessault, Payton Marchessault, Rebecca Marchessault and Tim Marchessault pose in this recent handout photo near the Canada-U.S. border crossing near Beaver Creek, Yukon. A family reunion trip for the woman from Georgia that left them stranded ended on a bright note when Bath drove them to the Alaskan border following an appeal for help. THE CANADIAN PRESS/HO, Gary Bath *MANDATORY CREDIT*
Help from B.C. man allows American family to reunite in Alaska

Lynn Marchessault drove from Georgia to the Alaska border to join her husband, who serves in U.S. military

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

There are 32 active outbreaks in seniors' homes in the Fraser Health region.
MAP: See the locations of 32 active COVID-19 outbreaks in Fraser Health seniors’ homes

There are 32 active outbreaks in assisted-living, long-term care homes and seniors’ rental buildings

(Pixabay.com)
Man, 28, warned by Kootenay police to stop asking people to marry him

A woman initially reported the incident to police before they discovered others had been popped the question

Winston Blackmore (left) and James Oler (right) were sentenced on separate charges of polygamy this week in Cranbrook Supreme Court.
No more charges expected in Bountiful investigation, special prosecutor says

Special prosecutor says mandate has ended following review of evidence from Bountiful investigations

Most Read