Baltimore to Sue Drug Distributors Over Opioid Crisis

Baltimore to Sue Drug Distributors Over Opioid Crisis

Introduction

Baltimore is set to go to trial in its $11 billion lawsuit against drug distributors McKesson and Cencora (formerly AmerisourceBergen), accusing them of contributing to the opioid addiction crisis and overdose deaths that have devastated the city.

The city chose to opt out of national opioid settlements, aiming to secure more compensation by pursuing its case independently. Jury selection for the trial will begin in the Circuit Court for Baltimore City, Maryland.

The lawsuit alleges that McKesson and Cencora ignored warning signs that the opioids they distributed were being diverted into illegal markets, exacerbating the opioid crisis. Baltimore argues that these companies should be held financially accountable for the costs associated with addressing the epidemic.

In response, Cencora stated that it does not control the supply or demand for medications but distributes opioids based on prescriptions written by doctors. The company also emphasized that it reported suspicious orders to U.S. authorities. McKesson has not yet commented on the case.

Baltimore had also planned to take Johnson & Johnson's Janssen division to trial over allegations that it downplayed the risk of addiction when marketing its opioid drugs Duragesic and Nucynta. However, the city reached a settlement with Janssen over the weekend, though the terms were not disclosed. Johnson & Johnson has denied the allegations and declined to comment on the settlement.

Baltimore is one of more than 3,000 local governments, Native American tribes, and states across the country that have filed lawsuits against drug manufacturers, distributors, and pharmacies over their roles in the opioid crisis. While most of these cases have been resolved through nationwide settlements totaling around $46 billion, Baltimore and other jurisdictions hard-hit by the crisis have opted out of these agreements, hoping to secure larger payouts by going to trial.

In 2022, Baltimore recorded 904 opioid overdose deaths, despite its population of only 569,000. This is significantly higher than the national opioid overdose death rate of about 25 per 100,000 people. The city has already secured $402.5 million in settlements with pharmacy operator Walgreens and drugmaker Teva ahead of the trial.

Choosing to opt out of the national settlements comes with both potential rewards and risks. For instance, San Francisco won a $230 million settlement from Walgreens after a trial victory, marking the largest payout for any local government. Similarly, West Virginia, another opt-out state, secured about $1 billion in opioid settlements, the highest recovery per capita of any state.

However, not all opt-outs have been successful. The city of Huntington, West Virginia, and its surrounding county lost their trial against McKesson, Cencora, and Cardinal Health after a judge dismissed their public nuisance claims, which are similar to those brought by Baltimore. If Huntington and its county do not overturn the decision on appeal, they will not receive any compensation from the distributors.

McKesson was responsible for distributing about half of the opioids in Baltimore between 2006 and 2019, according to U.S. government data. In 2017, McKesson reached a $150 million settlement with the U.S. Department of Justice, admitting it had failed to prevent the illegal sale of opioids nationwide. The judge presiding over Baltimore’s trial has ruled that jurors will be allowed to hear about this prior settlement. Additionally, Cencora is currently facing a civil lawsuit brought by the Justice Department over its alleged involvement in the opioid crisis.

The opioid epidemic has claimed the lives of more than 800,000 people in the United States between 1999 and 2023, according to the U.S. Centers for Disease Control and Prevention. Baltimore’s trial could set a precedent for other jurisdictions that opted out of national settlements and are seeking accountability from companies linked to the crisis.