Another Blow To The "Disguised Class Action" Theory

Earlier this year, the Fourth Circuit rejected a bid by a group of pharmacies to refashion an action brought by the West Virginia attorney general as a "disguised class action" filed on behalf of West Virginia citizens. A recent decision dealt a similar blow to the seller of the prescription pain medication OxyContin in a lawsuit brought by the Kentucky attorney general, though for different reasons.

In In re Oxycontin Antitrust Litigation, the Commonwealth of Kentucky brought a variety of state law claims alleging that Purdue—the company that designs, sells, and distributes OxyContin—misled and deceived consumers, medical providers, and government officials regarding the drug, particularly with respect to risks of addiction. The Commonwealth sought damages on its own behalf, in the form of restitution for Medicaid reimbursements it made to Kentucky residents for prescriptions the Commonwealth claims would never have been written but for Purdue's deceptive