- The $ 50 billion deal consists of cash and addiction treatment medication to be given out over the upcoming years.
- Although a jury was sworn in Thursday, a judge presiding over the case summoned CEOs, state attorneys general and lawyers working on the case to continue settlement talks.
- By settling, cities would receive much-needed cash and medical help for residents, and companies can stop spending millions on legal fees and facing bad publicity.
- But if the case proceeds to trial Monday, two Ohio counties particularly hard-hit by the epidemic will face off against six of the companies.
- The counties will argue the drug companies created a “public nuisance,” and request an award of up to $ 8 billion.
- A 12-person jury will decide whether the companies broke the law, which they have denied, saying they delivered regulated medication to market and bear no responsibility.
What to watch for: Whether a deal is made before Monday. If it is, three defendants, distributors that control up to 90% of the U.S. market—McKesson Corp., Cardinal Health and AmerisourceBergen—would contribute $ 18 billion to the deal, while Johnson & Johnson would contribute $ 4 billion. Addiction treatment medication worth $ 29 billion would be donated by Teva Pharmaceuticals and six other defendants. The settlement’s terms, however, could change.
Key background: Almost 400,000 Americans have died in the opioid epidemic over the past two decades. Millions remain addicted, costing local governments millions of dollars and creating enormous strain on law enforcement, health providers and social services. Cities began filing lawsuits against the drug companies in 2014. By 2019, the number of opioid lawsuits ballooned to more than 2,500, with nearly every U.S. state filing separate litigation as well. The total economic toll of the crisis could range from $ 50 billion to over $ 1 trillion, according to estimates.
Tangent: Purdue Pharma (which manufactured OxyContin) and its owners, the Sackler family, were part of the case until the company offered a separate settlement of up to $ 12 billion and filed for bankruptcy in September. If the settlement is accepted, the Sacklers will relinquish control of Purdue.
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If the case proceeds Monday, two Ohio counties particularly hard-hit by the epidemic will face off … [+]
Topline: If a tentative $ 50 billion opioid settlement between attorneys representing almost 2,500 lawsuits and multiple major U.S. drug companies falls apart by Monday, the first federal trial to determine who is responsible for the opioid crisis will begin.
- The $ 50 billion deal consists of cash and addiction treatment medication to be given out over the upcoming years.
- Although a jury was sworn in Thursday, a judge presiding over the case summoned CEOs, state attorneys general and lawyers working on the case to continue settlement talks.
- By settling, cities would receive much-needed cash and medical help for residents, and companies can stop spending millions on legal fees and facing bad publicity.
- But if the case proceeds to trial Monday, two Ohio counties particularly hard-hit by the epidemic will face off against six of the companies.
- The counties will argue the drug companies created a “public nuisance,” and request an award of up to $ 8 billion.
- A 12-person jury will decide whether the companies broke the law, which they have denied, saying they delivered regulated medication to market and bear no responsibility.
What to watch for: Whether a deal is made before Monday. If it is, three defendants, distributors that control up to 90% of the U.S. market—McKesson Corp., Cardinal Health and AmerisourceBergen—would contribute $ 18 billion to the deal, while Johnson & Johnson would contribute $ 4 billion. Addiction treatment medication worth $ 29 billion would be donated by Teva Pharmaceuticals and six other defendants. The settlement’s terms, however, could change.
Key background: Almost 400,000 Americans have died in the opioid epidemic over the past two decades. Millions remain addicted, costing local governments millions of dollars and creating enormous strain on law enforcement, health providers and social services. Cities began filing lawsuits against the drug companies in 2014. By 2019, the number of opioid lawsuits ballooned to more than 2,500, with nearly every U.S. state filing separate litigation as well. The total economic toll of the crisis could range from $ 50 billion to over $ 1 trillion, according to estimates.
Tangent: Purdue Pharma (which manufactured OxyContin) and its owners, the Sackler family, were part of the case until the company offered a separate settlement of up to $ 12 billion and filed for bankruptcy in September. If the settlement is accepted, the Sacklers will relinquish control of Purdue.