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Tag: Opioid Settlement

Jury Finds That Pharmacy Chains Played Substantial Role in Opioid Epidemic

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Last week, a federal jury in Cleveland found that three large pharmacy chains — CVS Health, Walmart, and Walgreens — played a substantial role in the opioid epidemic in two Ohio counties, Lake and Trumbull. This ruling marks the first time in the decades-long crisis that the retail section of the drug industry has been held responsible.

Pharmacy Chains Found Guilty in Recent Trial

Lawyers for the plaintiffs argued that the pharmacy chains had repeatedly ignored numerous red flags about questionable opioid orders, both at the counters where patients picked up their prescriptions and at corporate headquarters. Following hearings to be held this spring, the trial judge will decide how much each company must pay. 

“It’s the first opioid trial against these major households names,” explained Adam Zimmerman, a mass litigation professor at Loyola Law School in Los Angeles. “They have been the least willing group of defendants to settle, so this verdict is at least a small sign to them that these cases won’t necessarily play out well in front of judges.” He believes some pharmacy defendants may choose to settle instead of going to trial. 

Prior to this ruling, the public nuisance argument was rejected twice in cases against opioid manufacturers, in both California and Oklahoma. The judges ruled that, based on each state’s public nuisance laws, the companies were too far removed from the overdoses and deaths to be declared at fault.

Still, plaintiffs in thousands of lawsuits across the nation found the verdict to be encouraging. They are all relying on the same trial strategy: that pharmacies contributed to the “public nuisance” in the opioid crisis. 

What’s Next for Opioid Epidemic Lawsuits

Zimmerman noted the opioid lawsuits still have a long way to go. “It’s more like there are many different ballgames going on at once, each with slightly different rules, and we’re in the early innings of almost all of them,” he said. Plus, because each state has slightly different public nuisance laws, the recent outcome may have little bearing on upcoming cases. 

The first opioid case was filed in 2014. Despite thousands of ongoing trials, the urgency of getting help to deeply-impacted communities has not slowed. In fact, new data released earlier this month shows that deaths from opioids reached record levels during the pandemic, driven by illegal drugs like heroin and street fentanyl. 

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

Opioid Manufacturers Win Major Victory in California

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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

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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

Pharmacies Face First Trial for Role in Opioid Crisis

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This week, a bellwether federal trial begins in Cleveland focused on the role that retail pharmacies played in the opioid crisis, which has resulted in the deaths of nearly 500,000 Americans over the past two decades. The trial, ruled over by U.S. District Judge Dan Polster, is part of 3,000 lawsuits that have been consolidated.

Opioid Crisis in Ohio

In Lake County, between 2012 and 2016, so many prescription painkillers were dispensed that the amount equaled 265 pills for every resident. In Trumbull County, during the same period, it totaled 400 pills for every resident. Efforts to control and address the epidemic has cost each county at least $1 billion. Administrators cite increased costs for their courts, jails, foster care, law enforcement, and addiction treatment. 

“People need to realize that drug addiction is a family disease, and everyone in the family is affected by it,” said Trumbull County resident Sharon Grover. Grover’s daughter died after becoming addicted to prescription pain pills and then heroin. “I’m never going to be the same,” she added.

Response from Pharmacies

For the first time, pharmacies — specifically, CVS, Walgreens, Giant Eagle, and Walmart — will have to defend their role as distributors in the ongoing epidemic. Rite-Aid already settled with both counties. Trumbull County received $1.5 million in their settlement, while Lake County was awarded an undisclosed amount. 

The trial will focus on the harm to the counties as well as the response by the pharmacy chains. It is expected to last around six weeks. The outcome will set the tone for future lawsuits against pharmacies around the United States.

The pharmacies argue that their pharmacists were simply filling prescriptions written by physicians for medical needs. Attorneys for CVS believe that the allegations “are completely unfounded. The evidence presented at trial will show not only that CVS met the legal requirements for distributing prescription opioid medications in Lake and Trumbull Counties but that it exceeded them.” 

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

Additional Reading:

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

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

Opioids

Judge Approves $10 Billion Plan in Purdue Pharma Opioid Lawsuits

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Last week, a federal bankruptcy judge tentatively approved a $10 billion plan submitted by OxyContin manufacturer Purdue Pharma. The plan will resolve lawsuits related to the company’s role in the opioid crisis — an epidemic that has killed 500,000 Americans during the last 20 years. The settlement was reached with both individual victims and thousands of state and local governments.

Details of the $10 Billion Plan for Purdue Pharma

U.S. Bankruptcy Judge Robert Drain noted that his approval of the plan is contingent upon two technical changes.  While he does not have “fondness for the Sacklers (owners of Purdue Pharma) or sympathy for them,” collecting money from them through litigation would be challenging.

Under the new terms, the Sackler family will release ownership of the company and contribute $4.5 billion to the plan but will be absolved from any future opioid lawsuits. They were not, however, given immunity from criminal charges, although there is no reason to believe they will face any. Additionally, a compensation fund will pay sufferers of drug addiction between $3,500 and $48,000 each. 

Meanwhile, Purdue Pharma will be reorganized into a new company. The board will be determined by public officials, and the company will contribute its profits to efforts to prevent and treat opioid addiction.

The Opioid Epidemic

It’s been nearly two years since the drug manufacturer filed for bankruptcy after over 3,000 lawsuits were filed against them. These cases accuse the company of fueling the opioid epidemic through aggressive marketing of the addictive prescription painkiller. 

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

Additional Reading:

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

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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

Purdue Pharma’s Bankruptcy Plan In Response to Opioid Crisis

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The United States Department of Justice (DOJ) is denouncing a proposed bankruptcy plan for Purdue Pharma, the manufacturer of OxyContin. In court filings from mid-July, the DOJ’s Trustee Program, which keeps a close eye on the federal bankruptcy system, describes the settlement as fatally flawed, unconstitutional, and illegal. In a second statement, the office of the U.S. Attorney for the Southern District of New York argued that the plan went against the “constitutional right to due process” for individuals with potential opioid claims. 

Purdue Pharma Opioid Settlement

According to the settlement, which has been negotiated over the past year, the Sackler family, who owns Purdue Pharma, would pay nearly $4.3 billion from their private accounts to help the people and communities negatively affected by OxyContin. In return, members of the family as well as a long list of their associates, would be given “third-party releases,” protecting them from future opioid lawsuits. Although that provision has raised eyebrows, more and more states are agreeing to the plan. 

In his objection, Trustee William Harrington described the settlement as “impermissible.” He blamed the Sacklers, who, by their own calculations, earned more than $10 billion from opioid sales, and their associates of using the bankruptcy system to avoid taking responsibility for “alleged wrongdoing in concocting and perpetuating for profit one of the most severe public health crises ever experienced” in our country. In a separate filing, U.S. Attorney Audrey Strauss said that the bankruptcy plan denies due process to those with potential claims. 

Purdue Pharma as Trigger for Opioid Epidemic

The marketing of OxyContin by Purdue Pharma in the late 1990s is recognized as a primary trigger of the deadly opioid epidemic, which has killed over 500,000 Americans. The company has pleaded guilty twice to federal criminal charges concerning its marketing techniques. Still, the Sacklers believe they have done nothing wrong and acted ethically.

Federal Bankruptcy Judge Robert Drain is expected to approve the settlement at a confirmation hearing planned for Monday, August 9. He believes the plan is “an opportunity to avoid years of costly and uncertain litigation.”

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

Additional Reading:

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

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

Opioids

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

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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

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