64 F. Supp. 3d 1146
N.D. Ill.2014Background
- Funds seek nationwide class of third-party payors who reimbursed Depakote off-label 1998–2012.
- Abbott marketed Depakote for non-FDA approved uses; actions and DOJ SEC investigations disclosed 2009–2012.
- Abbott admitted promoting off-label uses and paying kickbacks as part of a 2012 settlement.
- Alleged three Abbott enterprises (CENE, ACCESS, PharmaCare/ABcomm) facilitated off-label promotion and inducements.
- Funds allege scheme violated FDA marketing rules and engaged in RICO-related misconduct.
- Court grants Abbott’s motion to dismiss; claims barred by statute of limitations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| RICO accrual and discovery timing | Funds discovered injury in 1998 (off-label reimbursements) | Limitations run from injury and discovery; multiple limitations theories rejected | RICO claims time-barred; discovery rule applied to injury, not action; no salvage via separate accrual |
| Equitable estoppel | Abbott concealed involvement to prevent timely suit | No active steps beyond necessary concealment; not actionable | Equitable estoppel unavailable; insufficient affirmative steps to toll |
| Equitable tolling | Discovery of RICO claim should toll limitations | No diligent, ongoing inquiry; delay not reasonable | Equitable tolling unavailable; delay unreasonable and no diligent inquiry |
| State-law claims untimeliness (ICFA, NY GBL, unjust enrichment) | Discovery/continuing conduct tolling possibilities | Timeliness measured from 1998 injury or 2009 disclosures; outside windows | All state-law claims time-barred; equitable doctrines inapplicable; unjust enrichment failed where ICFA failed |
Key Cases Cited
- Agency Holding Corp. v. Malley-Duff & Assocs., Inc., 483 U.S. 143 (1987) (four-year civil RICO limitations period)
- Rotella v. Wood, 528 U.S. 549 (2000) (discovery rule for accrual in RICO cases)
- Cancer Found., Inc. v. Cerberus Capital Mgmt., 559 F.3d 671 (7th Cir. 2009) (injury discovery rule; accrual timing for RICO claims)
- Klehr v. A.O. Smith Corp., 521 U.S. 179 (1997) (reasonable diligence required for discovery)
- Cada v. Baxter Healthcare Corp., 920 F.2d 446 (7th Cir. 1990) (equitable estoppel requires active concealment steps by defendant)
- Zyprexa Prods. Liab. Litig., 253 F.R.D. 69 (E.D.N.Y. 2008) (recognizes continuing duty of fiduciaries to monitor prescriptions (reconsidered on appeal))
- McCool v. Strata Oil Co., 972 F.2d 1452 (7th Cir. 1992) (discusses accrual of RICO pattern; injury focus)
- Knox Coll. v. Celotex Corp., 430 N.E.2d 976 (Ill. 1981) (discovery rule for Illinois tolling begins when injury information available)
- Elmore v. Henderson, 227 F.3d 1009 (7th Cir. 2002) (limits on equitable tolling timeframes)