Trade and Opioid Diversion: Litigation Strategies and Case Studies delivers the first truly comprehensive exploration of illicit diversion—an urgent and often misunderstood threat impacting both the consumer‑goods and pharmaceutical industries. Trade diversion occurs when products intended for one sales channel are redirected to another. It is considered illicit when it violates contractual terms or involves fraud or other legal misconduct, and in some cases has resulted in criminal charges.
While diversion schemes operate in the shadows, the financial and public‑safety consequences are enormous. This book brings those hidden dynamics to light and provides the legal community with the strategic tools needed to confront them.
Illicit trade diversion drains manufacturers and authorized distributors of millions of dollars—sometimes in a single transaction. More critically, diverted pharmaceutical products leave the legitimate supply chain, stripping manufacturers and regulators of the ability to track or confirm product quality. In the context of life‑saving medications, this lack of visibility can render drugs ineffective, unsafe, or outright dangerous. Despite their severity, these losses and risks are rarely publicized, and diverters work tirelessly to keep their activities concealed. Confidential settlements in civil diversion cases are common, while government agencies have also pursued criminal prosecutions in certain schemes. This book examines both the civil and criminal dimensions of these cases in detail.
The work also explores the distinct landscape of opioid diversion litigation, a field shaped by mass‑tort practitioners, municipal counsel, state attorneys general, and multibillion‑dollar settlements that have reshaped public‑health accountability. Unlike traditional trade diversion cases—where diverters are often independent actors—opioid diversion cases frequently target manufacturers, authorized distributors, retail chains, and medical professionals. The claims asserted range from public‑nuisance theories to state consumer‑protection statutes. This book unpacks these complex litigations and the legal theories that drive them.
A uniquely practical and authoritative resource, the book provides:
- A clear, structured review of legal issues in both trade and opioid diversion, drawn from state and federal judicial decisions.
Insight into the claims and defenses that define trade‑diversion litigation, including discussion of the relevant federal and state statutory frameworks. - Guidance on pre‑litigation considerations—how diversion occurs, how to detect it, and essential steps for investigating and preparing a case.
Detailed analysis of factual and legal findings in published decisions. - The author’s expert observations on diverter behavior, based on years of repeated exposure to diversion schemes.
- Practitioner‑oriented pointers valuable to anyone litigating or defending against diversion claims.
This book is an essential resource for in‑house counsel seeking to prevent and respond to diversion threats, for law‑firm litigators evaluating and advancing diversion‑related claims, for government attorneys pursuing opioid‑related enforcement actions, and for legal academics who wish to demonstrate real‑world applications of diversion statutes and common‑law theories to their students.
Rodney A. Brown began his career as an Assistant District Attorney in the New York County District Attorney's Office. After serving as a litigation associate and partner in several corporate practice law firms, he started his own firm in 1990. The firm was last known as Brown & Whalen, P.C.
A graduate from the Cornell Law School, Mr. Brown litigated numerous trade diversion cases, from 1995 through 2015. Many of his clients included prominent companies, such as, The Clorox International Company; Conopco, Inc. (“Unilever”); Hershey Foods Corp.; The Quaker Oats Company (now a division of Pepsi Co.); Dial Corp., Eagle Family Foods Group LLC, The Merisant Company and The NutraSweet Company (previously divisions of Monsanto), and American Pharmaceutical Partners n/k/a Frensenius Kabi USA, LLC.
Mr. Brown is admitted to the bar of New York and numerous federal courts. From 2010 to 2018 he was selected as a Super Lawyer by the Super Lawyers advisory board and received an AV Preeminent Peer Review Rating in Martindale Hubbell for many years.
