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Opioid Manufacturers Win Major Victory in California

Earlier this month, a California judge rejected an argument being used in thousands of cases against the pharmaceutical industry for its role in the opioid epidemic. The abuse of these drugs has led to the deaths of over 500,000 people in the United States since the 1990s. Unfortunately, the crisis has worsened during the COVID-19 pandemic. This decision marks the first major legal victory for four opioid manufacturers, which include Johnson & Johnson, Teva, Allergan, and Endo Pharmaceuticals.

Major Victory for Opioid Manufacturers

Filed in 2014, this case was brought by the counties of Santa Clara, Los Angeles, and Orange as well as the city of Oakland. It was one of the first proceedings to demand that drug manufacturers be held accountable for the epidemic. Specifically, the trial focused on whether the companies were responsible for creating “a public nuisance.” This reasoning has been argued by local California governments as well as many individual plaintiffs pursuing cases across the country. 

Judge Peter Wilson represented the Orange County State Superior Court and presided over the four-month bench trial. “There is simply no evidence to show that the rise in prescriptions was not the result of the medically provision of pain medications to patients in need,” he wrote of his decision.

Specifically, Judge Wilson declared that, if the companies did engage in misleading marketing, “any adverse downstream consequences flowing from medically appropriate prescriptions cannot constitute an actionable public nuisance.” In other words, it would be impossible to determine the increase in legitimate prescriptions versus those that were ill-acquired. Even so, he acknowledged the seriousness of the opioid epidemic. 

Future Implications of the Ruling

The ruling confirmed what legal experts have claimed since the beginning of litigation: that assigning responsibility of the epidemic will be difficult due to the many hands involved in the prescription process. The opioids pass from the manufacturers, distributors, doctors, and pharmacies before ever reaching a patient. Plus, the drugs are federally-approved for pain management, making it challenging to determine where the patient need ends and the misuse begins.

This major victory for manufacturers may or may not impact other trials, as so few cases have been decided thus far. Still, there are reasonable implications of the decision. “It’s the first defense win, so it suggests that maybe, as these cases are litigated instead of being settled, there are opportunities for defendants to score victories,” explained Adam Zimmerman, a professor at Loyola Law School in Los Angeles. 

For more information about the opioid epidemic and lawsuits, contact us today.

Additional Reading:

Johnson & Johnson Agrees to $297M Opioid Deal with Texas, National Deal Faces Holdouts

Pharmacies Face First Trial for Role in Opioid Crisis

Tentative Opioid Settlement For $26 Billion Focuses on Treatment, Prevention, and Education

Johnson & Johnson Agrees to $297M Opioid Deal with Texas, National Deal Faces Holdouts

Johnson & Johnson (J&J) and the top three drug distributors previously agreed to a national opioid settlement for 26 billion dollars. However, because that deal is not yet finalized, the pharmacy company is moving forward with a separate deal in Texas. 

New Settlement for Johnson & Johnson and Texas

For the new deal, which is consistent with the nationwide settlement, J&J will pay Texas 297 million dollars to put towards opioid claims from the state and its municipalities. The national deal, then, will no longer included this settlement amount. Additionally, J&J will no longer be a defendant in pending opioid litigation in the state, which includes two bellwether trials planned for early next year. 

The pharmacy company clarified that the settlement with Texas is not an admission of guilt. They believe that their opioid marketing was “appropriate and responsible.” 

National Opioid Deal

The national deal was created in July between J&J, drug distributors, states, and localities. Unfortunately, it is still seeking the needed support and not yet finalized. Eight states have yet to sign on, according to Reuters. In this settlement, J&J agreed to pay 5 billion dollars, while the distributors agreed to pay 21 billion dollars.

The Texas deal isn’t completed until 96 percent of the localities that filed lawsuits against J&J are signed on. This new settlement is an attempt by Texas to secure payout regardless of the outcome of the national deal. 

J&J has also defended itself against talc litigation in past years. Recently, the pharmaceutical company said they would move its talc business to a new subsidiary and declare bankruptcy for the current business. They have set aside billions of dollars to deal with thousands of lawsuits that link their talc products to cancer. Plaintiffs are arguing against the bankruptcy approach. 

For more information about the opioid crisis and settlement, contact us today.

Additional Reading:

Pharmacies Face First Trial for Role in Opioid Crisis

Tentative Opioid Settlement For $26 Billion Focuses on Treatment, Prevention, and Education

Johnson & Johnson Agrees to End Opioid Business With $230 Million Settlement

Opioids

Alabama Announces No Involvement in $26 Billion Settlement Over Opioid Crisis

The state of Alabama will not take part in a $26 billion settlement concerning lawsuits against drug companies for the opioid crisis. “Alabama is not a party to the multi-state opioid settlements,” Mike Lewis, communications director for Attorney General Steve Marshall, said. “Instead, the state continues to pursue its own legal strategy to best address the impact of the opioid crisis on Alabama.”

Alabama’s Legal Strategy

Alabama’s lawsuit against manufacturer Endo Pharmaceuticals and distributor McKesson Corporation was originally filed in 2019. It is set to begin trial on November 1st in Montgomery Country Circuit Court. Alleging deceptive marketing tactics, the lawsuit states, “Defendants needed to transform the medical and public perception to one that would permit the use of opioids not only for acute and palliative care but also for long periods of time to treat more common aches and pains, like lower back pain, arthritis, and headaches.” The state is requesting civil penalties, restitution, and punitive damages. 

Reuters reported that other states that have not agreed to the settlement are Georgia, New Mexico, Oklahoma, Washington, and West Virginia. New Hampshire agreed to the settlement with the distributors but not with Johnson & Johnson. 

The Opioid Crisis

According to the Associated Press (AP), in 2012, distributors shipped enough of the addictive painkillers to give every person in the country a 20-day supply. Both prescription and illegal opioids (like heroin and fentanyl) have been linked to the more than 500,000 deaths nationwide since 2000. 

The AP first reported the multi-state opioid settlement in July. It is expected to involve more than 40 states and covers thousands of lawsuits filed by both state and local governments against three drug distribution companies as well as Johnson & Johnson. In the lawsuits, both state and local governments argue that drug companies did not adequately control the supply of opioids. The companies continue to deny they are to blame.

For more information about the Johnson & Johnson opioid settlement, contact us today.

Additional Reading:

Purdue Pharma’s Bankruptcy Plan In Response to Opioid Crisis

Tentative Opioid Settlement For $26 Billion Focuses on Treatment, Prevention, and Education

Johnson & Johnson Agrees to End Opioid Business With $230 Million Settlement

Tentative Opioid Settlement For $26 Billion Focuses on Treatment, Prevention, and Education

500,000 Americans have died since the opioid epidemic began more than two decades ago, with nearly 70,000 people overdosing in 2020 alone (a record 191 every single day). Now, the country is making notable strides to end the crisis. Just last week, the biggest penalty for drug companies’ role in the crisis was announced with a tentative settlement worth $26 billion. 

Federal law states that primary responsibility for preventing illegal distribution of pharmaceutical painkillers falls to three major companies: McKesson, Cardinal Health, and AmerisourceBergen. They have been accused of ignoring the fact that billions of pills entered the black market and contributed to the epidemic. The new deal includes payment from these companies of $21 billion over 18 years with the remaining $5 billion paid out over 9 years by Johnson & Johnson (J&J). It’s important to note that J&J was once responsible for supplying much of the raw material for opioids and sold some painkillers but no longer does in either the United States or Canada. 

Opioid Settlement Details

The deal would settle more than 3,000 lawsuits, which were consolidated into one of the largest and most complicated civil litigation battles in U.S. history. Currently, the main contributor to the epidemic is illicit fentanyl manufactured in labs abroad, rather than the legal medicine distributed in the country. According to the Centers for Disease Control and Prevention, opioid prescriptions have dropped from a high of 255.2 million in 2012 to 153.2 million in 2019. 

The settlement money will go towards treatment, prevention, and education as well as other costs of the epidemic, including nearly $2 billion to private attorneys. However, none of the families who have lost a loved one or any sufferers of substance-use disorders will receive payment. Some money may be set aside in an escrow fund as early as September.

A group of 10 state attorneys general involved in the case said in a statement, “We look forward to bringing much-needed dollars home to our states to help people recover from opioid addiction and to fundamentally change the opioid manufacturing and distributing industries so this never happens again.” 

Of course, the harm done by the epidemic far surpasses the proposed settlement, but the agreement is a step towards improvement. “Getting this deal struck now and getting this money distributed fairly quickly — this is going to start to save people’s lives right away,” said Gary Mendell, whose son Brian passed away in 2011 after battling addiction. Mendell, who is also the founder of Shatterproof, a non-profit working to end the addiction crisis, added that a critical component of the deal is guaranteeing that funds go towards evidence-based treatment and prevention programs. 

For more information about the opioid epidemic and settlement, contact us today. 

Additional Reading:

Johnson & Johnson Agrees to End Opioid Business With $230 Million Settlement

Opioids

Johnson & Johnson Agrees to End Opioid Business With $230 Million Settlement

Johnson & Johnson has agreed to a $230 million settlement with New York state to prevent the promotion and sale of opioids within the United States. Over the last few decades, the opioid epidemic has killed nearly 500,000 people in the country, prompting years of lawsuits against major pharmaceutical companies. 

The agreement includes the resolution of opioids-related claims with payment allocation over the next nine years. The company could also pay up to $30 million more in the first year if the state executive chamber passes new legislation for an opioid settlement fund. 

The Opioid Epidemic

The company stopped marketing the drugs in 2015 and fully ended the business in 2020. Local governments believe that companies over-prescribed the drugs, leading people to become addicted, while companies argue that they distributed the necessary product amount to address medical issues. 

“The opioid epidemic has wreaked havoc on countless communities across New York state and the rest of the nation, leaving millions still addicted to dangerous and deadly opioids,” said New York Attorney General Letitia James. “Johnson & Johnson helped fuel this fire, but today, they’re committing to leaving the opioid business — not only in New York but across the entire country.” Additionally, New York state will focus on opioid prevention, treatment, and education efforts to prevent future tragedies. 

The New York opioid lawsuit trial against other defendants began at the end of June.

For more information about the Johnson & Johnson opioid settlement, contact us today.

Additional Reading:

Opioids

Johnson & Johnson

Johnson & Johnson to Pay $2 Billion in Landmark Baby Powder Trial

On June 1st, the Supreme Court rejected an appeal from Johnson & Johnson (J&J) without comment. In 2018, 22 women sued the company over its talc products, believing the asbestos in the products gave them ovarian cancer. Talc and asbestos are often found in the same mines, with asbestos being a known carcinogen. Jurors noted sufficient evidence to support the link between the talc, asbestos, and ovarian cancer diagnoses. 

The plaintiffs won in a $4.7 billion verdict, which was later reduced to $2 billion by a Missouri appeals court. Ultimately, the women were each awarded $25 million in compensatory damages, and the company was fined.

Mesothelioma, a rare form of cancer, is also linked to asbestos exposure. J&J is currently fighting thousands of lawsuits linked to this cancer, having set aside almost $4 billion to cover the related expenses.

In 1976, J&J participated in an industry agreement to ensure asbestos-free products. However, in 2018, a Reuters investigation found mention of undisclosed asbestos contamination in over three decades of internal reports from the company. Just a year later, in 2019, the U.S. Food and Drug Administration (FDA) confirmed the presence of asbestos in J&J talc products.

In May 2020, U.S. and Canadian sales of baby powder ended due to “pandemic-related low demand and public safety misinformation.” Publicly, J&J maintains the safety of their products. 

For more information about the link between J&J talc baby powder and asbestos exposure, contact us today.

Additional Reading:

Johnson & Johnson Sets Aside Nearly $4 Billion for Talc Verdict

Johnson & Johnson to Stop Selling Talcum Powder

Johnson & Johnson

New Class Action Brought Against Ethicon and Johnson & Johnson

New proceedings have been launched against Ethicon and Johnson & Johnson for manufacturing defective mesh implants. Women implanted with the pelvic floor repair systems after July 4, 2017, may have experienced complications such as chronic pain, painful intercourse, and incontinence. As a result, Shine Lawyers filed a second class action in the Federal Court in early April. 

According to Shine, the first class action was “the largest women’s health class action in Australia’s history”. In November 2019, Justice Anna Katzmann declared that the mesh implants from Ethicon and Johnson & Johnson were “not fit for purpose” and of “unmerchantable quality.”

Shine practice leader Rebecca Jancauskas shares, “We have seen firsthand the terrible impact these products can have on women’s lives, and [these repercussions] drive our team to pursue all available avenues to seek reparations.” 

The new proceedings, headed up by Jancauskas, will include women who did not meet the cut-off date for the first class action. She adds, “We know there are thousands of women who were implanted with these defective products or who have developed complications… That’s why we’ve continued to fight for justice for these women, so none are left behind.” Hundreds of women who expressed interested in the earlier trial are potentially eligible to participate in the second lawsuit. 

A separate lawsuit was recently filed against Boston Scientific Corporation and Boston Scientific Pty Ltd by AJB Stevens Lawyers, also on behalf of women who have suffered due to unacceptable mesh implants. 

For more information about these proceedings, contact us today.

Related Articles:

Hernia Mesh | Lawsuits and Legal Update

Johnson and Johnson seeks to dismiss thousands of talc baby powder lawsuits 

Johnson & Johnson Sets Aside Nearly $4 Billion for Talc Verdict

A securities filing from late February shows that Johnson & Johnson (J&J) allotted $3.9 billion for litigation expenses in 2020 and that the funds were “primarily associated with talc-related reserves and certain settlements.” This figure is almost twice as much as the $2.1 billion that the company agreed to set aside in November. 

A 2018 Reuters report first revealed that J&J has known for decades about asbestos in the talc. Internal records and trial testimony, among other evidence, show that their raw talc and finished powders sometimes tested positive for small amounts of asbestos from 1971 to the early 2000s. The pharmaceutical company now faces 25,000 lawsuits by former users of its baby powder who believe that the asbestos-laced talc caused their cancers.

The drugmaker is currently appealing to the Supreme Court against a $2.12 billion verdict in Missouri to women who believe their ovarian cancer developed due to asbestos in J&J products. Additionally, in November, a New York state judge ordered the company to pay $120 million to a Brooklyn couple after the woman argued that her cancer was a result of asbestos exposure from their baby powder.

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