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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Rob and Jennifer King run Sasquatch Cyclery out of their garage. (Soranne Floarea/ The Free Press)
‘Hop on it now’: Parts crunch hits cycling

New bikes are hard to get and used bikes are selling at a premium this year

Michel-Natal-Sparwood Heritage Society runs a museum that was established to display the heritage of the "no-longer towns" of Michel and Natal, and the Elk Valley Area. Photo Submitted/Monica Beranek, Artifact Curator
Sparwood Museum requests a leg up to stay open full-time

The museum is volunteer-run, but needs a full-time employee to be able to snag much-needed grants

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
110 new cases of COVID-19 in Interior Health

Provincial health officers announced 1,005 new cases throughout B.C.

It costs as little as $7 to charge an EV at home. (Scott Tibballs / The Free Press)
Electric Vehicles a rare sight (in the Kootenays), but change on the way

Electric pickups will increase the appeal of zero-emission vehicles in years to come according to Blair Qualey of the New Car Dealers Association

Linda Krawczyk and her dad Doug Finney enjoyed a ride around beautiful Fernie on Friday thanks to Melanie Wrigglesworth and the local chapter of Cycling Without Age. (Scott Tibballs / The Free Press)
Cycling Without Age goes for its first spin

Doug Finney (86) got to enjoy a ride around Fernie

In this image from NASA, NASA’s experimental Mars helicopter Ingenuity lands on the surface of Mars Monday, April 19, 2021. The little 4-pound helicopter rose from the dusty red surface into the thin Martian air Monday, achieving the first powered, controlled flight on another planet. (NASA via AP)
VIDEO: NASA’s Mars helicopter takes flight, 1st for another planet

The $85 million helicopter demo was considered high risk, yet high reward

New figures show Canadian housing prices outpacing those in other developed countries. (Black Press Media file photo)
Canadian housing prices fastest rising in the world

Relative to 2000, housing prices have risen by a factor of more than 2.5

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Russ Ball (left) and some of the team show off the specimen after they were able to remove it Friday. Photo supplied
80-million-year-old turtle find on B.C. river exciting fossil hunters

Remains of two-foot creature of undetermined species will now make its home at the Royal BC Museum

Joudelie King wants to get out and live life to the fullest, but there are places she can’t go because they don’t meet her accessibility needs. (submitted photo)
New online tool provides accessibility map for people with disabilities

The myCommunity BC map provides accessibility info for nearly 1,000 locations in the province

British Columbia’s provincial flag flies in Ottawa, Friday July 3, 2020. THE CANADIAN PRESS/Adrian Wyld
Wildfire fanned by winds near Merritt prompts evacuation alert

BC Wildfire Service says the suspected human-caused blaze was fanned by winds

The Rogers logo is photographed in Toronto on Monday, September 30, 2019. THE CANADIAN PRESS/Tijana Martin
Rogers investigating after wireless customers complain of widespread outage

According to Down Detector, problems are being reported in most major Canadian cities

Flow Academy is located at 1511 Sutherland Avenue in Kelowna. (Michael Rodriguez - Capital News)
National fitness group condemns unlicensed Kelowna gym’s anti-vaccine policy

The Fitness Industry Council of Canada says Flow Academy is shining a negative light on the industry

Most Read