Opioid Crisis Settlements Totaling $32B May Soon Be Finalized

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Opioid Crisis Settlement Overview:

• Who: A $32 billion settlement that will provide payments to states, local governments and opioid epidemic victims may soon be finalized.
• Why: Opioid distributors and wholesalers have agreed to settle allegations they fueled the opioid epidemic in the United States.
• Where: Once finalized, the opioid settlement payments will be distributed throughout the United States.

Corporations that allegedly fueled the opioid crisis in the United States may be required to pay $32 billion to victims and governments as negotiations are nearing an end.

The largest deal involves AmerisourceBergen, Cardinal Health, McKesson and Johnson & Johnson. The drug distributors and wholesalers deny any wrongdoing but agreed to pay $26 billion to escape the litigation.

NPR reports that a final opioid settlement agreement, which will provide payments to nearly all 50 states, local governments and victims, may be announced imminently.

Purdue Pharma, notorious for creating OxyContin, and members of the Sackler family are still in talks but may be nearing a deal worth around $6 billion.

The Sacklers maintain that they have done nothing wrong, but they have faced tremendous backlash for their purported involvement in pushing the sales of OxyContin despite high rates of opioid addiction and overdoses.

In December, a proposed $4.5 billion settlement reached as part of Purdue Pharma’s bankruptcy proceeding was rejected by a federal judge. The Sacklers are seeking to be released from all future liability for opioid cases.

Some opioid crisis victims are concerned that the proposed opioid settlements do not provide enough for those who became addicted to prescription opioids and family members who lost loved ones to fatal opioid overdoses.

The bulk of the payments will be spent on reducing future addiction and fatalities, which supporters say will be the best way to funnel as much money as possible toward easing the effects of the opioid crisis.

Pharmacies Deny Wrongdoing in Opioid Crisis Lawsuits

Even if the opioid settlements are approved, other opioid lawsuits against companies that sold prescription opioid medications will continue. 

Major pharmacy chains including CVS, Walgreens and Walmart have denied wrongdoing.

However, they may not be able to avoid liability for their role in the opioid crisis. Last year, an Ohio jury found that the pharmacies did not do enough to keep patients safe when dispensing the pain medication.

The pharmacies are reportedly planning to appeal.

In another opioid lawsuit filed in California, U.S. District Judge Charles R. Breyer denied motions by opioid manufacturers and distributors to pause the case. This opioid class action lawsuit was filed by the state of California and the city and county of San Francisco. They allege the pharmacy companies improperly dispensed prescription opioid medications.

According to the California opioid lawsuit, the drug companies created a public nuisance by improperly marketing opioid painkillers and failed to prevent the drugs from ending up being sold illicitly.

Last month, an “unprecedented” number of local governments throughout the United States agreed to participate in Johnson & Johnson’s $26 billion opioid crisis settlement. The deadline to opt in to the opioid settlement was Jan. 26, and approximately 90% of local governments that were eligible to participate indicated they would do so.

Johnson & Johnson has also reached a proposed $590 million opioid crisis settlement with Native American tribes.

Do you think the pharmacies should be liable for their alleged role in the opioid epidemic? Join the discussion in the comments below.

California is represented by Lieff Cabraser Heimann & Bernstein LLP and Robbins Geller Rudman & Dowd LLP.

The California Opioid Lawsuit is City and County of San Francisco, et al. v. Purdue Pharma LP, et al., Case No. 3:18-cv-07591, in the U.S. District court for the Northern District of California.

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