Weekly Mass Torts Bulletin 2022-Feb-07

Philadelphia Agrees On $1B Opioid Settlement

Philadelphia, along with other Pennsylvania counties, signed on a settlement that would churn out $1 billion for drug treatment and prevention, considering the opioid crisis in the state.

The officials agreed on the settlement after a brief argument where the mayor and the district attorney stated that the amount was too low and the 18-year payout schedule is too long for one of the most affected cities because of the drug epidemic.

According to the AG's office, Philadelphia would get at least $186 million as a share from the national opioid settlement of $26 billion. The mayor even stated that the city would get additional funds considering the city's devastation and residents' suffering.

The AG even informed that the drug distributors and manufacturer would start the payout of the settlement as soon as in April. It will help the government to set up programs to aware the drug-addicted people about the drawbacks and will also help to prevent the future opioid crisis. The agreement will even prevent greedy pharmaceutical companies' profit-oriented and deceptive opioid marketing.

Many cities and states across the U.S. have signed the $26 billion nationwide opioid settlement. The settlement amount will be paid by the drug manufacturer Johnson & Johnson (J&J) along with the three-drug distributors AmerisourceBergen Corp, McKesson Corp, and Cardinal Health, Inc. It will address the nationwide opioid crisis that has resulted in a large number of deaths and has devastated families and communities.

Native American Tribes Reach $590M Opioid Settlement

Johnson and Johnson (J&J), along with the three largest drug distributors of the United States (U.S.), have agreed to pay $590 million to Native American tribes over the claims of fueling the opioid crisis.

As per the estimates, the Native American population has been affected the most among all the populations in the United States (U.S.) because of the opioid epidemic. The tribal leadership committee disclosed that the per capita rate of opioid overdoses is highest among the American Indians. The study even revealed that over time from 1999-2015, American Indians and Alaska Natives had the highest death rate due to drug overdose as compared to other racial and ethnic groups.

J&J denied liability and wrongdoing in the opioid crisis but has agreed to pay $150 million over the next two years. The company even defended the promotion of its medication. The spokesperson for J&J also highlighted that the company has discontinued prescription opioid medications from the U.S. market.

AmerisourceBergen Corp, McKesson Corp, and Cardinal Health, Inc will pay the settlement share of $440 million over the next seven years. The final approval of the settlement will be given after hundreds of tribes sign the agreement.

The tribal leadership committee explained that the settlement funds would efficiently help to deal with and cover the costs of the opioid crisis. It will also help the Native American tribes to equally compete with the U.S. states for the settlements in the opioid crisis.

Last year, drug distributors AmerisourceBergen Corp, Cardinal Health Inc and McKesson Corp proposed to pay up to $26 billion to states and local governments for resolving similar claims.

All Minnesota Cities Signed A $300M Opioid Settlement

More than 140 cities and all the Minnesota counties have signed a $300 million opioid settlement that could help the local governments to address the opioid crisis.

The settlement amount would be used to set up treatment centers, education campaigns, and other programs to deal with the opioid epidemic. The $300 million settlement is a part of the $26 billion national opioid settlement, and Minnesota will receive the payment for the same over 18 years.

The opioid manufacturer Johnson & Johnson (J&J), along with the drug distributors AmerisourceBergen, Cardinal Health and McKesson are the defendants that will pay the settlement amount, which will eventually get the companies rid of opioid liabilities. The opioid manufacturer and distributors are even accused of fueling the opioid crisis by using deceptive marketing strategies to boost opioid sales and garner profits.

The states and localities who are opting for the opioid settlement would have to agree to the clause that they will not hold the companies responsible for future opioid litigations. The deadline for the local governments to participate in the deal is February 25 post which the companies would decide if a sufficient number of local governments have signed the agreement to proceed with the process.

25% of the settlement amount would be allocated to the state, whereas 75% would be given to the counties and eligible cities. Attorney General Keith Ellison has assembled a panel to divide the payout of the settlement. The panel would include medical practitioners, public health officials and first responders, along with representatives from the League of Minnesota Cities, the Association of Minnesota Counties,  and Coalition of Greater Minnesota Cities.

As per the pending bankruptcy plans with pharmaceutical companies Purdue Pharma and Mallinckrodt, Minnesota might receive more tens of millions of dollars.

Florida Agrees Two Opioid Settlements Totaling $360M

Florida enters into two opioid settlement agreements with Johnson & Johnson (J&J) and Endo Health Solutions, summing up the settlement amount to $360 million.

J&J and Endo Health Solutions will pay nearly $300 million and $65 million, respectively, as per the settlement agreement over their role in fueling the opioid crisis in the country and Florida.

Attorney General Ashley Moody stated that the opioid crisis has disrupted the peace of the country by affecting many families and communities across the nation. She added that the settlements are the perfect solutions to make the companies pay for their actions, and it will also help to restore the devastation caused due to opioid abuse.

The AG's office has created an online portal for local governments to sign onto the settlement agreement, and a similar process would be used for the Endo Agreement. The final amount of the settlement will be decided in the next few months, which would be paid over several years to various counties and municipalities.

The AG even argued that Endo Health Solutions Inc. used unfair strategies of marketing to boost opioid sales and downplayed the risks associated with opioid addiction. The company even failed to monitor and report suspicious orders of opioid medications.

Last year in August, Texas Attorney General Ken Paxton announced a $26 billion opioid settlement which is the largest penalty in the opioid crisis of U.S. history. The agreement includes payout from the nation's major pharmaceutical distributors, AmerisourceBergen, Cardinal and McKesson along with opioid manufacturer J&J. The amount would be used to tackle the opioid crisis and prevent opioid addiction among the people.