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UnitedHealth's ( UNH ) pharmacy benefits manager is trying again to
get prominent plaintiffs law firm Motley Rice booted from a
lawsuit over the company's alleged role in the U.S. opioid
crisis, citing the firm's past work for state and local
governments.
OptumRx last week asked a federal magistrate judge in Utah
to disqualify Motley Rice as the attorneys for the state, which
has accused OptumRx of having "incredible knowledge and control
over the flow of opioids into our communities." Optum has said
that all the claims against it are without merit.
OptumRx said Motley Rice has obtained confidential
information about how the company works through its prior
representations of Chicago, the District of Columbia and Hawaii
in other investigations, and then began actively litigating
against OptumRx in opioid cases around the country.
"These ethical violations do not turn on Motley Rice's
intentions or on whether the firm's lawyers actually use the
confidential information gathered in the government
investigations," OptumRx said in its July 31 filing. "It is
enough that Motley Rice could use that confidential information
in other litigation against OptumRx."
Motley Rice, OptumRx and UnitedHealth ( UNH ) did not respond to
requests for comment. OptumRx is represented in the case by
lawyers from Alston & Bird and Parr Brown Gee & Loveless.
A spokesperson for the Utah attorney general's office -
which is also representing the state - declined to comment.
The state said on Wednesday in a court filing that it
will oppose OptumRx's bid to bounce Motley Rice from the case.
It is common for government entities to bring in private law
firms for complex litigation, with payment often contingent on a
successful outcome.
Companies have criticized and pushed back on the
arrangements.
DoorDash ( DASH ) clashed with the city of Chicago, which tapped
Cohen Milstein Sellers & Toll for its lawsuit against the
restaurant delivery service, arguing that the arrangement
violated its due process rights. The city and DoorDash ( DASH ) reached a
settlement in principle over their dispute in June.
In April, a pro-business legal advocacy group urged U.S.
House leaders to examine the District of Columbia's practice of
hiring plaintiffs law firms for cases brought by the city's
attorney general.
OptumRx said Utah's professional rules of conduct prohibit
Motley Rice from representing the state, arguing there is "no
question that Motley Rice could use the confidential government
information to OptumRx's material disadvantage here."
OptumRx told the court that it was not challenging Utah's
ability to seek the counsel of its choice.
The company has tried in other opioid cases to force Motley
Rice to sit on the sidelines, but has so far failed.
In one of those cases, U.S. District Judge Dan Aaron Polster
in Cleveland last year said Motley Rice's "successive and
simultaneous" work for private clients, while also "wearing the
mantle of authority of a public entity," poses a serious risk
that the firm's power could be used to benefit a private client
or create a conflict of interest.
But Polster ruled against OptumRx's bid to disqualify Motley
Rice, finding that the company was already required to turn over
all relevant documents in the case, and for not challenging
Motley Rice's representation earlier.
-- Jones Day partner and judicial nominee Eric Tung disclosed
receiving $925,000 in income last year from the firm on a
financial disclosure form that he submitted as part of the
confirmation process. Tung reported $850,000 for 2023.
Tung is a nominee to the San Francisco-based 9th U.S.
Circuit Court of Appeals. Tung, based in Los Angeles and a Jones
Day partner since 2023, is a former law clerk to both Supreme
Court Justice Neil Gorsuch and Supreme Court Justice Antonin
Scalia.
Financial disclosures are mandatory filings for court and
agency nominees, and they can offer a window into pay at law
firms and other employers. Tung did not immediately respond to a
request for comment.
-- Plaintiffs firms Hagens Berman and Cohen Milstein have asked
a federal judge in Chicago to award them more than $45 million
in legal fees for their work on chicken price-fixing settlements
worth $181 million.
Their request follows litigation in the 7th U.S. Circuit
Court of Appeals over a prior fee award to the firms. The
appeals court in July ruled that the firms were entitled to
26.6% of the settlement fund.
"This case presented a high-risk conspiracy claim and
required the plaintiffs to litigate against numerous defendants,
significantly increasing both the burden and complexity of the
proceedings," the plaintiffs told U.S. District Judge Thomas
Durkin.
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