Optum picks new fight to kick law firm Motley Rice off opioids case
UnitedHealth's pharmacy benefits manager is trying again to get prominent plaintiffs law firm Motley Rice booted from a lawsuit over the company's alleged role in the U.S. opioid crisis, citing the firm's past work for state and local governments.
OptumRx last week asked a federal magistrate judge in Utah to disqualify Motley Rice as the attorneys for the state, which has accused OptumRx of having "incredible knowledge and control over the flow of opioids into our communities." Optum has said that all the claims against it are without merit.
OptumRx said Motley Rice has obtained confidential information about how the company works through its prior representations of Chicago, the District of Columbia and Hawaii in other investigations, and then began actively litigating against OptumRx in opioid cases around the country.
"These ethical violations do not turn on Motley Rice's intentions or on whether the firm's lawyers actually use the confidential information gathered in the government investigations," OptumRx said in its July 31 filing, opens new tab. "It is enough that Motley Rice could use that confidential information in other litigation against OptumRx."
Motley Rice, OptumRx and UnitedHealth did not respond to requests for comment. OptumRx is represented in the case by lawyers from Alston & Bird and Parr Brown Gee & Loveless.
A spokesperson for the Utah attorney general's office — which is also representing the state — declined to comment.
The state said on Wednesday in a court filing that it will oppose OptumRx's bid to bounce Motley Rice from the case.
It is common for government entities to bring in private law firms for complex litigation, with payment often contingent on a successful outcome.
Companies have criticized and pushed back on the arrangements.
DoorDash clashed with the city of Chicago, which tapped Cohen Milstein Sellers & Toll for its lawsuit against the restaurant delivery service, arguing that the arrangement violated its due process rights. The city and DoorDash reached a settlement in principle over their dispute in June.
In April, a pro-business legal advocacy group urged U.S. House leaders to examine the District of Columbia's practice of hiring plaintiffs law firms for cases brought by the city's attorney general.
OptumRx said Utah's professional rules of conduct prohibit Motley Rice from representing the state, arguing there is "no question that Motley Rice could use the confidential government information to OptumRx's material disadvantage here."
OptumRx told the court that it was not challenging Utah's ability to seek the counsel of its choice.
The company has tried in other opioid cases to force Motley Rice to sit on the sidelines, but has so far failed.
In one of those cases, U.S. District Judge Dan Aaron Polster in Cleveland last year said Motley Rice's "successive and simultaneous" work for private clients, while also "wearing the mantle of authority of a public entity," poses a serious risk that the firm's power could be used to benefit a private client or create a conflict of interest.
But Polster ruled against OptumRx's bid to disqualify Motley Rice, finding that the company was already required to turn over all relevant documents in the case, and for not challenging Motley Rice's representation earlier.
-- Jones Day partner and judicial nominee Eric Tung, opens new tab disclosed receiving $925,000 in income last year from the firm on a financial disclosure form that he submitted as part of the confirmation process. Tung reported $850,000 for 2023.
Tung is a nominee to the San Francisco-based 9th U.S. Circuit Court of Appeals. Tung, based in Los Angeles and a Jones Day partner since 2023, is a former law clerk to both Supreme Court Justice Neil Gorsuch and Supreme Court Justice Antonin Scalia.
Financial disclosures are mandatory filings for court and agency nominees, and they can offer a window into pay at law firms and other employers. Tung did not immediately respond to a request for comment.
-- Plaintiffs firms Hagens Berman and Cohen Milstein have asked, opens new tab a federal judge in Chicago to award them more than $45 million in legal fees for their work on chicken price-fixing settlements worth $181 million.
Their request follows litigation in the 7th U.S. Circuit Court of Appeals over a prior fee award to the firms. The appeals court in July ruled, opens new tab that the firms were entitled to 26.6% of the settlement fund.
"This case presented a high-risk conspiracy claim and required the plaintiffs to litigate against numerous defendants, significantly increasing both the burden and complexity of the proceedings," the plaintiffs told U.S. District Judge Thomas Durkin.
Read more:
Lawyers face objections to multimillion-dollar fees after no-cash settlement with Schwab
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