Indivior obtains Third Circuit affirmation of dismissal of RICO, state law claims
Client(s) Indivior Inc.
On December 15, 2022, the United States Court of Appeals for the Third Circuit ruled in favor of Jones Day clients Indivior Inc., Indivior Solutions Inc., and Indivior plc. The Third Circuit affirmed dismissal of a case filed by multiple health insurers alleging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO), as well as violations of state laws, in connection with Indivior's marketing and sale of the opioid use disorder treatment, Suboxone. The Eastern District of Pennsylvania had dismissed the insurers' complaints in July 2021, holding that the plaintiff insurers lacked standing to sue under RICO because they were not direct purchasers of Suboxone, and declining to exercise supplemental jurisdiction over the insurers' state law claims. The Third Circuit affirmed the dismissal. The court found that the insurers' claim that they reimbursed insureds for their purchases of Suboxone was barred by the indirect purchaser rule.
Humana Inc. v. Indivior Inc., et al., No. 21-2573 (3d Cir.); Centene Corp., et al. v. Indivior Inc., et al., No. 21-2574 (3d Cir.)