Summit county executive Ilene Shapiro speaks to the media outside the U.S. Federal courthouse, Monday, Oct. 21, 2019, in Cleveland. The nation’s three dominant drug distributors and a big drugmaker have reached a $260 million deal to settle a lawsuit related to the opioid crisis just as the first federal trial over the crisis was due to begin Monday. (AP Photo/David Dermer)

Summit county executive Ilene Shapiro speaks to the media outside the U.S. Federal courthouse, Monday, Oct. 21, 2019, in Cleveland. The nation’s three dominant drug distributors and a big drugmaker have reached a $260 million deal to settle a lawsuit related to the opioid crisis just as the first federal trial over the crisis was due to begin Monday. (AP Photo/David Dermer)

Companies reach $260 million deal to settle U.S. opioids lawsuit

The drug industry is facing more than 2,600 lawsuits in the U.S.

The nation’s three biggest drug distributors and a major drugmaker reached a $260 million settlement with two Ohio counties Monday over the deadly havoc wreaked by opioids, striking a deal just hours before they were set to face a jury at the start of the first federal trial over the crisis.

The settlement means the closely watched trial will not move forward now.

The trial involved only two counties — Cleveland’s Cuyahoga County and Akron’s Summit County — but was seen as an important test case that could gauge the strength of the opposing sides’ arguments and prod them toward a nationwide settlement.

Across the country, the drug industry is facing more than 2,600 lawsuits brought by state and local governments seeking to hold it accountable for the crisis that has been linked to more than 400,000 deaths in the U.S. over the past two decades. A federal judge in Ohio has been pushing the parties toward a settlement of all the lawsuits for nearly two years.

The agreement announced Monday calls for the distributors AmerisourceBergen, Cardinal Health and McKesson to pay a combined $215 million, said Hunter Shkolnik, a lawyer for Cuyahoga County.

Israeli-based drugmaker Teva would contribute $20 million in cash and $25 million worth of Suboxone, a drug used to treat opioid addiction.

“People can’t lose sight of the fact that the counties got a very good deal for themselves, but we also set an important national benchmark for the others,” Shkolnik said.

The deal contains no admission of wrongdoing by the defendants, said Joe Rice, a lead plaintiffs’ lawyer.

But it could turn up the pressure on all sides to work out a nationwide settlement, because every partial settlement reached reduces the amount of money the companies have available to pay other plaintiffs.

Separately, the small distributor Henry Schein also announced Monday that it is settling with Summit County for $1.25 million. The company was not named in Cuyahoga’s lawsuit.

After the new settlements and previous ones with other drugmakers, the only defendant left in the trial that had been scheduled for Monday is the pharmacy chain Walgreens. The new plan is for Walgreens and other pharmacies to go to trial within six months.

Monday’s settlement removes the risks and uncertainties involved in a trial for both sides: The counties immediately lock in money they can use to deal with the crisis, and the drug companies avoid a possible finding of wrongdoing and a huge jury verdict.

“I have to say a day in court is always a good thing, but it doesn’t always get you where you need to go, or as fast as you need to go there,” Summit County Executive Ilene Shapiro said.

It also means that the evidence prepared for the trial won’t be fully aired.

Lawyers for the counties were preparing to show jurors a 1900 first edition of “The Wonderful Wizard of Oz,” featuring the poisonous poppy fields that put Dorothy to sleep, and a 3,000-year-old Sumerian poppy jug to show that the world has long known the dangers of opioids.

U.S. District Judge Dan Polster, who is overseeing the mountain of lawsuits, has long pushed for a coast-to-coast settlement that would provide money for treatment and other expenses associated with the crisis and force the industry to change its ways.

The plaintiffs have accused the industry of aggressively marketing opioids while downplaying the risks of addiction and turning a blind eye toward suspiciously large shipments of the drugs. The industry has denied wrongdoing.

Industry CEOs and attorneys general from four states met Friday in Cleveland, where the offer on the table was a deal worth potentially $48 billion in cash and drugs to settle cases nationally.

But they couldn’t close the deal, partly because of disagreements between state and local governments over how to allocate the settlement, which would have come from the three big distributors, Teva and Johnson & Johnson.

In a statement, the attorneys general from North Carolina, Pennsylvania, Tennessee and Texas, which are leading those talks, said that effort will continue — and that the Ohio settlement helps.

“People in every corner of the country have been hurt by this crisis, and it is critical that settlement funds be distributed fairly across states, cities and counties and used wisely to combat the crisis,” they said.

OxyContin maker Purdue Pharma, often cast as the biggest villain in the crisis, reached a tentative settlement last month that could be worth up to $12 billion. But half the states and hundreds of local governments oppose it. It remains to be seen whether the settlement will receive the approvals it needs.

In a statement, Walgreens noted in its defence that it distributed opioids only to its own pharmacies, something it says differentiates the company from others in the industry.

“We never sold opioid medications to pain clinics, internet pharmacies or the ‘pill mills’ that fueled the national opioid crisis,” the company said.

ALSO READ: Fewer people prescribed opioids in B.C., but other provinces lack data: doctors

ALSO READ: Canadian drug makers hit with $1.1B suit for pushing opioids despite risks

___

Mulvihill reported from Cherry Hill, New Jersey.

___

Julie Carr Smyth And Geoff Mulvihill, The Associated Press


Like us on Facebook and follow us on Twitter.

Just Posted

It doesn’t matter where or how you received a COVID-19 vaccination, to receive the second immunization everyone must register on the ‘Get Vaccinated’ system health officials said, on May 11. While numbers are down Prince Rupert has not yet ‘zero’ cases as of numbers reported for May 2nd to 8th. (Image: BCCDC)
Prince Rupert still not at ‘zero’ COVID-19 cases

For second immunizations everyone in Prince Rupert and region must register, health officials said

Food programs such as the BC Fruit and Veggies program are important to student learning and students would be at a loss without them, Jeremy Janz principal of Pacific Coast School said, on May 13. Full tummies are the best way to start the day for Prince Rupert students, Natalia White (11) and Nikisha Johnson (12) who attended the official launch of the Breakfast Club of Canada program at PRMS on Feb. 25, 2020. (Photo: K-J Millar/The Northern View)
School fruits and veggies may be cut, said BC Liberals

P.R. students healthy food knowledge grew from the BC School Fruit and Vegetable Nutritional program

Gabriel Bureau president of the Prince Rupert Teachers union said on May 13 that SD 52 52 announced teacher lay-offs has broken the trust. (Photo:K-J Millar/The Northern View)
Teacher job losses are unnecessary, lay-off notices may be issued today, says PRDTU

Prince Rupert District Teachers Union says trust has been broken

Courtnay Girbav has been creating a little magic along the McClymont Trail in April with the initiation of a memorial fairy garden. The garden’s golden Buddha was recently found to be missing on May 2. (Photo: K-J Millar/The Northern View)
Fairy garden magic along McClymont Trail

An enchanted garden created in memory of a deceased friend has golden statue stolen

Prince Rupert Regional Airport is on track for flights to resume to the local airport on June 23. New airport federal funding was announced on May 11 to assist with COVID-19 recovery.  (Northern View file photo)
New federal airport funding takes off

Flights on track to resume June 23 at Prince Rupert Regional Airport

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

On Friday, May 14 at Meadow Gardens Golf Club in Pitt Meadows, Michael Caan joined a very elite club of golfers who have shot under 60 (Instagram)
Crowds at English Bay were blasted with a large beam of light from an RCMP Air-1 helicopter on Friday, May 14. THE CANADIAN PRESS/Marc Grandmaison
Police enlist RCMP helicopter to disperse thousands crowded on Vancouver beach

On Friday night, police were witness to ‘several thousand people staying well into the evening’

People shop in Chinatown in Vancouver on Friday, February 5, 2021. THE CANADIAN PRESS/Jonathan Hayward
Vancouver community leaders call for action following 717% rise in anti-Asian hate crimes

‘The alarming rise of anti-Asian hate in Canada and south of the border shows Asians have not been fully accepted in North America,’ says Carol Lee

Sinikka Gay Elliott was reported missing on Salt Spring Island on Wednesday, May 12. (Courtesty Salt Spring RCMP)
Body of UBC professor found on Salt Spring Island, no foul play suspected

Sinikka Elliott taught sociology at the university

The first Black judge named to the BC Supreme Court, Selwyn Romilly, was handcuffed at 9:15 a.m. May 14 while walking along the seawall. (YouTube/Screen grab)
Police apologize after wrongly arresting B.C.’s first Black Supreme Court Justice

At 81 years old, the retired judge was handcuffed in public while out for a walk Friday morning

Dr. Steve Beerman, of Nanaimo, shows off his Dr. David Bishop Gold Medal, awarded for distinguished medical service. (Karl Yu/News Bulletin)
Queen presents Vancouver Island doctor with award for global drowning prevention

Dr. Steve Beerman receives Royal Life Saving Society’s King Edward VII Cup at virtual ceremony

Former UFV Cascades wrestling coach Arjan Singh Bhullar is now the ONE heavyweight champion after defeating Brandon Vera via TKO in round two on Saturday in Singapore. (ONE Championship)
Former UFV wrestling coach wins MMA championship

Arjan Singh Bhullar captures ONE heavyweight title, first Indian origin fighter to achieve honour

Astra Zeneca vaccine waits for injection in a Feb. 3, 2021 file photo. A Langley man has become the second B.C. resident to suffer a blood clot following an injection. (AP Photo/Frank Augstein)
B.C. man required emergency surgery after AstraZeneca vaccination

Shaun Mulldoon suffered ‘massive blood clot’ after jab

Most Read