History
  • No items yet
midpage
State of New Hampshire v. Purdue Pharma L.P.
1:17-cv-00427
D.N.H.
Jan 9, 2018
Read the full case

Background

  • New Hampshire sued Purdue Pharma alleging deceptive marketing of opioids caused statewide harms (public-health costs, overdoses, law‑enforcement and responder burdens) and seeking injunctive relief, restitution, civil penalties, and damages for the State’s own injuries on behalf of the State, municipalities, and consumers.
  • Complaint was filed in Merrimack County Superior Court; Purdue removed to federal court asserting CAFA jurisdiction; State moved to remand under 28 U.S.C. § 1447(c).
  • The jurisdictional dispute turned on whether the State’s suit is a “class action” under CAFA (28 U.S.C. § 1332(d)(1)(B)) because the State did not invoke Federal Rule of Civil Procedure 23.
  • The State relied on the parens patriae authority in N.H. Rev. Stat. Ann. § 358‑A:4 to bring Consumer Protection Act claims in the name of the State; it did not bring a class action under the CPA’s class‑action provision (§ 358‑A:10‑a).
  • Court construed the complaint in favor of removability for jurisdictional purposes but considered whether a parens patriae suit is “similar” to a Rule 23 class action for CAFA purposes.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether a state parens patriae action is a "class action" under CAFA State: This is a parens patriae suit protecting sovereign interests; not a class action and not removable under CAFA Purdue: The complaint seeks individualized restitution for citizens and thus is similar to a Rule 23 class action and removable under CAFA Held: Parens patriae suits are ordinarily not CAFA class actions; remand granted
Whether seeking relief that benefits individuals converts parens patriae into a class action State: Seeking equitable relief for citizens (injunction, restitution, abatement) does not transform sovereign suit into a class action Purdue: Requesting restitution/relief on behalf of individuals shows the suit functions like a class action Held: Seeking individualized equitable relief does not make a parens patriae action a Rule 23‑type class action
Whether the State invoked the CPA’s class action statute State: Relied on § 358‑A:4 (AG parens patriae authority), not § 358‑A:10‑a (private class actions) Purdue: Cites CPA class‑action provision to argue similarity to Rule 23 Held: The State invoked the parens patriae provision; it is the master of its complaint and did not plead a CPA class action
Whether CAFA evidences congressional intent to strip states of parens patriae jurisdiction State: CAFA does not clearly show intent to deprive states of sovereign parens patriae suits Purdue: CAFA should cover representative actions that functionally resemble class actions Held: CAFA does not clearly signal withdrawal of states’ sovereign parens patriae power; remand appropriate

Key Cases Cited

  • Dart Cherokee Basin Operating Co. v. Owens, 135 S. Ct. 547 (2014) (defendant must plausibly allege CAFA jurisdictional facts)
  • Amchem Prods., Inc. v. Windsor, 521 U.S. 591 (1997) (Rule 23(a) threshold requirements and class certification framework)
  • Alfred L. Snapp & Son, Inc. v. Puerto Rico, 458 U.S. 592 (1982) (scope of state parens patriae authority)
  • General Tel. Co. of the Northwest, Inc. v. EEOC, 446 U.S. 318 (1980) (agency representative actions seeking individual relief need not comply with Rule 23)
  • Purdue Pharma L.P. v. Kentucky, 704 F.3d 208 (2d Cir. 2013) (parens patriae suits generally not removable under CAFA)
  • West Virginia ex rel. McGraw v. CVS Pharmacy, Inc., 646 F.3d 169 (4th Cir. 2011) (parens patriae ≠ Rule 23 class action)
  • LG Display Co. v. Madigan, 665 F.3d 768 (7th Cir. 2011) (same)
  • Washington v. Chimei Innolux Corp., 659 F.3d 842 (9th Cir. 2011) (same)
  • Pazul v. Tough Mudder, 819 F.3d 548 (1st Cir. 2016) (amount‑in‑controversy reasonable‑probability standard discussion)
Read the full case

Case Details

Case Name: State of New Hampshire v. Purdue Pharma L.P.
Court Name: District Court, D. New Hampshire
Date Published: Jan 9, 2018
Docket Number: 1:17-cv-00427
Court Abbreviation: D.N.H.