Weekly Mass Torts Bulletin 2024-March-11
Endo to Pay $465M in Bankruptcy Settlement
Bankrupt drugmaker Endo International is set to pay up to $465 million to settle various federal claims, including law enforcement, tax, and healthcare costs, according to the U.S. Department of Justice (DOJ).
The settlement is a significant development, removing a major obstacle for Endo to finalize its asset sale to lenders during bankruptcy proceedings. The pharmaceutical company filed for bankruptcy in August 2022, aiming to address its $8 billion debt and resolve numerous lawsuits linked to its alleged involvement in the U.S. opioid epidemic.
As part of its bankruptcy restructuring, Endo has committed to paying around $600 million in settlements to states and individuals affected by the opioid crisis. This includes discontinuing the promotion of opioids to prescribers.
The U.S. Attorney for the Southern District of New York emphasized that bankruptcy does not exempt companies from accountability for criminal misconduct, civil fraud, or taxes. The DOJ settlement holds Endo accountable for past misconduct, ensuring compliance with previous agreements to fund state and local opioid addiction treatment programs and provide compensation to those harmed by the opioid epidemic.
Under the terms of the settlement, Endo will pay the government $364.9 million over ten years, with a contingent payment of up to $100 million based on the company's post-bankruptcy business performance. Alternatively, Endo can opt for a lower, one-time payment of $200 million upon exiting bankruptcy.
This settlement resolves claims exceeding $7 billion related to purported tax debts, a criminal investigation into Endo's opioid marketing practices, and potential overpayment by the federal government for Endo medications. Additionally, Endo's subsidiary, Endo Health Solutions Inc (EHSI), will plead guilty to a misdemeanor for its previous marketing of the opioid drug Opana ER, acknowledging violations of the Federal Food, Drug, and Cosmetic Act.
The opioid crisis has been a significant public health concern, with nearly 645,000 deaths from opioid overdoses reported between 1999 and 2021. Preliminary data indicates that overdose deaths remained elevated in 2022 and 2023, underscoring the ongoing severity of the crisis.
The settlement aligns with the broader legal landscape surrounding the opioid epidemic, where states, local governments, hospitals, and individuals have pursued legal action against companies accused of contributing to the crisis. The collective settlements with drugmakers, distributors, and pharmacy chains have exceeded $50 billion.
The resolution of Endo's claims is a critical step in its bankruptcy proceedings, allowing the company to proceed with its asset sale and emerge from bankruptcy.
Roundup Lawsuits in New Jersey Seek Centralization
A request has been filed by a group of plaintiffs urging the consolidation of all Roundup lawsuits related to non-Hodgkin’s lymphoma injuries in New Jersey state courts.
The request aims to establish a multicounty litigation (MCL) with coordinated discovery and pretrial proceedings. Over the past eight years, more than 120,000 Roundup lawsuits have been filed in the U.S., alleging inadequate warnings about the risk of developing non-Hodgkin’s lymphoma from the weed killer. The litigation gained momentum in 2015 when the World Health Organization’s International Agency for Research on Cancer classified glyphosate in Roundup as a probable cancer-causing agent. Despite Bayer and Monsanto resolving tens of thousands of cases, ongoing jury trials persist, especially in state courts like California and Missouri, with new lawsuits continually emerging.
In late January, 10 plaintiffs requested the Administrative Director of Courts in New Jersey to designate all Roundup cases in the state involving non-Hodgkins lymphoma as an MCL, proposing centralization for pretrial proceedings in Atlantic County. The consolidation aims to streamline discovery, prevent conflicting pretrial schedules, and enhance the convenience of all parties involved.
The Administrative Director of Courts called for comments, with the New Jersey Supreme Court considering them before deciding on the creation of a New Jersey Roundup MCL. If approved, the cases in New Jersey would function similarly to the federal multidistrict litigation (MDL) but at the state level. The appointed judge would oversee discovery into common issues, potentially establishing a “bellwether” process for representative claims to assess how juries respond to certain evidence.
This request aligns with recent nationwide verdicts favoring Roundup plaintiffs, including the largest to date, a $2.2 billion award by a Pennsylvania state court jury. Other victories include a $1.5 billion verdict in November 2023 and various wins in 2023. While a California judge upheld a $332 million Roundup jury award, the judge reduced the amount to $28 million, deeming the punitive damages excessive. The majority of U.S. cases are concentrated in Missouri state court, where Monsanto’s U.S. headquarters are located.
Apart from state court litigation, hundreds of claims are centralized in the federal court system before a U.S. District Judge in the Northern District of California. Waves of claims are being prepared for remand to different federal district courts for trial. The evolving landscape of Roundup litigation underscores the persistent legal battles surrounding the herbicide and its alleged link to non-Hodgkin’s lymphoma.
The outcome of the consolidation request in New Jersey will significantly impact the efficiency and direction of future proceedings for those seeking accountability for injuries attributed to Roundup.