Weekly Mass Torts Bulletin 2024-March-26
CVS Settles Alaska Opioid Role for $10M
CVS has settled with Alaska over its role in the state's opioid crisis, agreeing to pay $10 million over 10 years without admitting wrongdoing.
Alaska has reached a settlement with CVS regarding the company's involvement in the state's opioid crisis. CVS agreed to settle the complaint without admitting wrongdoing. Upon finalization, the state will receive $10 million over a span of 10 years.
The complaint alleges that CVS failed to adequately verify the legitimacy of opioid prescriptions during the peak of the prescription crisis. According to the state's press release, from 2010 to 2017, there were enough opioid prescriptions filled in Alaska to provide every resident with over 400 pills.
The Attorney General stated that pharmacies should have recognized issues with these numbers, indicating an excessive influx of opioids into the Alaskan market. During the initial wave of the crisis, many prescriptions were diverted to the black market, leading to illegal distribution. Pharmacies like CVS serve as a vital line of defense against such activities. However, the complaint suggests that CVS lacked sufficient systems to identify red flags, such as individuals filling opioid prescriptions from multiple doctors or obtaining prescriptions from out-of-state. Moreover, it alleges that CVS did not provide its pharmacists with adequate time and resources to investigate these red flags.
The complaint highlights the devastating impact of diverted opioids on Alaska, which has led to widespread havoc. Opioid prescriptions quadrupled nationwide between 1999 and 2014, contributing to Alaska's current heroin and fentanyl crisis. Last year alone, 220 Alaskans died from opioid overdoses.
In addition to CVS, the state has reached settlements with other opioid manufacturers and distributors, including Johnson & Johnson, Walmart, and Walgreens. These settlements are expected to bring nearly $100 million to Alaska over the next 15 years, designated for opioid addiction treatment and prevention. However, this amount pales in comparison to the overall cost of the opioid epidemic.
A recent report by the Alaska Mental Health Trust Authority estimated that the opioid crisis cost the state approximately $400 million in just one year. This figure encompasses health expenses and hidden costs such as lost productivity but does not capture the full extent of the crisis's non-economic toll.
To determine the best utilization of funds from the settlements, the governor appointed an advisory council in 2021. The council recommended directing the funds towards programs focused on addiction prevention, harm reduction, and supporting recovery efforts.
4th Circuit Sends WV City's Opioid Case to State High Court
A U.S. appeals court has referred a $2.5 billion lawsuit brought by a West Virginia city and county against major drug distributors over the opioid crisis to the state's highest court.
The city of Huntington and Cabell County sought to overturn a lower court's dismissal of their case, arguing that the distributors, including McKesson, Cardinal Health, and Cencora (formerly AmerisourceBergen), flooded the region with opioids, creating a "public nuisance." However, the appeals panel ruled that the West Virginia Supreme Court must address a key legal question: whether distributors can be held liable under state law for such conduct.
The plaintiffs alleged that the distributors' actions led to the shipment of approximately 81 million opioid pills to Cabell County, which has a population of fewer than 100,000, over an eight-year period. They argued that the distributors failed to heed red flags indicating illicit sales, thereby contributing to an epidemic of overdoses and crime.
Huntington and Cabell sought a $2.5 billion plan to address the public nuisance, including funding for addiction treatment and overdose prevention programs. In 2022, a U.S. District Judge ruled against Huntington and Cabell, stating that West Virginia's public nuisance law only covered conduct directly damaging public property or resources, not harm caused by drug sales.
The appeals court's decision to seek clarification from the state's highest court hinges on interpreting state law regarding public nuisance. Senior Circuit Judge emphasized that the case's revival depends on the interpretation of West Virginia law, particularly whether it encompasses harm resulting from opioid sales.
The opioid crisis has been devastating, with nearly 645,000 overdose deaths involving opioids recorded in the United States from 1999 to 2021, according to the CDC. West Virginia has been particularly hard hit, experiencing the highest per capita overdose death rate nationwide.
The referral of this lawsuit to the state's highest court underscores the legal complexities surrounding accountability for the opioid epidemic and the need for clarity in interpreting relevant state laws.