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Magistrate who oversaw discovery in Chicago's opioid lawsuit recuses himself, at city's request

COOK COUNTY RECORD

Thursday, November 21, 2024

Magistrate who oversaw discovery in Chicago's opioid lawsuit recuses himself, at city's request

Federal Court
Lucas v ackerman

From left: Attorneys Amy Lucas and David Ackerman | O'Melveny & Myers; Motley Rice

CHICAGO — Days after the city of Chicago secured a court order clearing the way for a trial in its long-running legal battle with opioid manufacturers, the city demanded recusal of a judge who guided a seven-year discovery process. Pharmaceutical defendants say the move will disrupt and delay the legal proceedings.

According to a motion the city filed April 2 in federal court in Chicago, the issue is “the involvement of Nancy Kim, sister of Magistrate Judge Young B. Kim." Nancy Kim is a lawyer for named defendant Allergan. Nancy Kim is moving into a new position after the resignation of AbbVie’s in-house attorney in charge of opioid litigation.

Just two days earlier, U.S. District Judge Jorge L. Alonso issued a ruling completely siding with the city on key legal questions needed to advance the case to the next step on the road to trial.


Magistrate Judge Young B. Kim | fedbarchicago.org

Alonso specifically said the city’s accusations against drugmakers and distributors — that the companies allegedly deceived doctors into over-prescribing their painkillers, allegedly leading to addiction in the general population, and resulting high costs to the city in dealing with the alleged associated problems — were enough to allow the lawsuit to continue, even if the city can’t provide “granular proof” of specific actions allegedly taken by the pharmaceutical companies in pursuit of its ambitions to boost the sale of the pain medications.

Following the April 2 motion, Alonso asked Allergan to clarify Nancy Kim’s new role. In its motion, the city said she now “will work closely with Kirkland & Ellis (and other firms) to develop and oversee the litigation and settlement strategy regarding opioid litigation at a national level, including serving as client representative as required and permitted in settlement discussions.”

The city argued the matter is complicated by the existence of several other similar lawsuits from plaintiffs across the country.

“Although Allergan offered to screen Ms. Kim from matters unique to the Chicago case (such as whether experts will be used in this case), her knowledge and decisions with respect to the national litigation will necessarily include and affect the city’s case,” the city's lawyers wrote in the April 2 motion. “Allergan’s national litigation strategy, settlement positions, and defenses will necessarily carry over to the Chicago litigation.”

In an April 6 motion opposing the recusal request, the defendants noted Judge Kim’s “seven years of personal involvement,” before removal to multidistrict litigation and following a remand, noting “inevitably there will be substantial delays and disruption to on-going discovery and trial preparation as a new Magistrate Judge gets up to speed.”

The defendants further noted Nancy Kim’s position with AbbVie, which acquired Allergan, has been known since June with no objections. They said the city unfairly rejected Allergan’s pledge to erect “an ethical wall” ensuring Nancy Kim would not act as a lawyer in the city’s litigation.

In an April 8 filing, Judge Kim recommended the case be assigned to another magistrate judge. Chief Judge Rebecca Pallmeyer approved that request in an order issued the same day.

The city has been in court against the medication makers and distributors since an initial filing in 2014. In addition to Allergan, the lawsuit has targeted such pharmaceutical giants as Purdue Pharma, the maker of the drug known as Oxycontin; Johnson & Johnson; Janssen Pharmaceuticals; Endo Pharmaceuticals; Teva Pharmaceuticals; and Cephalon, among others.

The city is represented by attorney David I. Ackerman and others with the firm of Motley Rice LLC, of Washington, D.C.; Kenneth A. Wexler and others with the firm of Wexler Wallace LLP, of Chicago; and attorneys with the city’s Department of Law.

The defendants are represented, among others, by attorneys Charles C. Lifland, Amy R. Lucas, and others with the firm of O’Melveny & Myers LLP, of Los Angeles; Sherry A. Knutson, of Tucker Ellis LLP, of Chicago; Tinos Diamantatos and others with the firm of Morgan Lewis & Bockius LLP, of Chicago, Philadelphia and Miami, Fla; Jonathan L. Stern and others with the firm of Arnold & Porter Kaye Scholer LLP, of Washington, D.C., and Los Angeles; Carole S. Rendon and Justin R. Donoho, of Baker & Hostetler LLP, of Cleveland and Chicago; Karl Stampfl and others of the firm Kirkland & Ellis LLP, of Chicago and Washington, D.C.; and Andrew J. O’Connor and Sarah M. Kimmer, of Ropes & Gray LLP, of Chicago.

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