Effort To Launch A “Negotiation Class” For Opioid MDL

Effort To Launch A “Negotiation Class” For Opioid MDL

Introduction

On Friday, June 14th, the plaintiff lawyers on behalf of the local governments proposed to create a "Negotiation Class" of cities and counties to seek a global settlement with drug companies accused of the opioid crisis.

According to the motion for class certification, nearly 40 local governments including the cities of Atlanta, Chicago, and San Francisco have moved to establish a deal with drug manufacturers, distributors, and pharmacies accused of the opioid crisis. Following the proposal, the county and municipal entities in the U.S. can participate collectively, through their representatives, in any settlement discussions that the defendants choose to conduct on a classwide basis and to vote to accept or reject any proposed resolution. The system would require approval by at least 75% supermajorities of litigating and non-litigating cities and counties, 75% of the population and 75% of the allocations to the cities and counties. It has also outlined a three-part formula for allocating settlement dollars. The three factors would include the extent of opioid sales in a given area, an area’s overdose deaths, and opioid-addicted residents.

U.S. District Judge Dan Polster is presiding over more than 1,900 lawsuits filed under MDL No. 2804 (In Re: National Prescription Opiate Litigation) by U.S. cities and counties of which more than 1,600 cases are filed largely by local governments, Native American tribes, and hospitals.