Weekly Mass Torts Bulletin 2022-Feb-21
Purdue Might Add $1B To Opioid Settlement
Purdue Pharma's owners Sackler family is considering adding $1 billion toward the opioid settlement to settle the payouts for the people who accused the OxyContin-maker of fueling the drug crisis.
The addition would sum up the total amount to $5.325 billion. Earlier this week, Purdue was very close to settling claims of fueling the opioid epidemic. The company has not responded or commented anything about the issue.
The mediator in the case even asked the judge to extend the deadline for the negotiations from February 7 to February 16 as it will give more time for the two sides to finalize a fair deal which would eventually add some more money to the settlement.
In 2019, the Sackler family, who owns Purdue and manufactures opioid pain drug OxyContin filed for bankruptcy considering the thousands of lawsuits the company face alleging that it fueled the opioid epidemic throughout the nation. The lawsuits even allege that the OxyContin makers used deceptive marketing strategies by downplaying the opioid overdose risks, which risked the lives of people.
Earlier, the Sackler family was even accused of exploiting the bankruptcy process that would give additional protection to the company against the growing opioid lawsuits.
Apart from Purdue, drug manufacturer Johnson & Johnson (J&J), along with three major drug distributors, Cardinal Health Inc, AmerisourceBergen Corp and McKesson Corp, are also facing opioid lawsuits. These companies are penalised with a $26 billion national settlement for fueling the opioid crisis.
J&J Battles Over Staying In Bankruptcy
LTL Management, a Johnson & Johnson subsidiary, has come to the limelight in the court considering its attempt to use the bankruptcy process for resolving the tens of thousands of talcum powder claims with allegations of causing cancer.
The company is battling to remain in bankruptcy as it finds that it is the only way to get rid of 38,000 claims against their talc-based products, which are alleged of causing mesothelioma. Contrary to the lawsuits, Johnson & Johnson (J&J) states that its talc products are safe for use.
J&J used the "Texas two-step" legal maneuver as a part of their bankruptcy process filing. It allows the companies to split valuable assets from liabilities. The lawyers representing the cancer patients state that the bankruptcy process will only delay the results of the lawsuit and deny justice to the plaintiffs.
According to the lawyers representing the talc plaintiffs, if the bankruptcy plan of J&J gets approved, other big companies might also use the same strategy to deal with facing liabilities. In July 2021, Democratic lawmakers in the House of Representatives proposed a plan to dismiss J&J's bankruptcy maneuver.
New Jersey's Bankruptcy Judge Michael Kaplan has scheduled a five-day trial for considering the bid by committees representing the plaintiffs that will eventually help in dismissing the bankruptcy plan. The judge even indicated to rule the verdict in the case before the end of the month.
AG Morrisey Of WV Highlights Distribution Of Opioid Settlement
Attorney General Patrick Morrisey of West Virginia announced a tentative agreement on the distribution of funds from the future opioid settlements with cities and counties.
The attorney general said that he is keen to plan a fair distribution of funds as the opioid epidemic is one of the major challenges of West Virginia. The First program of West Virginia is still awaiting approval from elected city and county officials. The division of the expected funds from the program are 24.5% for cities and counties, 3% to the Attorney General's Office and 72.5% to a non-profit opioid foundation which would be set up by the Attorney General’s Office.
As soon as the future settlements are distributed, the cities and counties would use the funds for developing programs to deal with substance abuse, avoidance, research, and education. It would even combat the sale and distribution of drugs and help to plan efficient programs for treatment and recovery.
The agreement would apply to future opioid settlements, excluding the Cabell County and the city of Huntington case against the AmerisourceBergen Drug Co., Cardinal Health Inc. and McKesson Corp. The litigation against opioid manufacturers and distributors includes 54 out of 55 counties, along with dozen of cities and towns.
The state Department of Health and Human Resource’s Office of Drug Control Policy provided data that states approximately 932 people died from drug overdoses in 2021, with a majority of them being due to opioids.