Sep 16 (Askume) – Drugmaker Johnson & Johnson ( &Cenocora (MCK.N) and drug distributor McKesson (JNJ.N)
The city has been particularly hard hit by the opioid crisis and has been left out of major national opioid settlements in recent years. It now hopes to win more money by taking the companies to court on its own. Jury selection is expected to begin Monday in Maryland Circuit Court in Baltimore.
The city has accused Cencora (formerly AmerisourceBergen) and McKesson of ignoring red flags that opioids they supplied were being diverted into illicit channels, while Johnson & Johnson’s Janssen unit was accused of concealing this while marketing opioids that are now relatively rarely used, posing a risk of addiction. The businesses must pay the cost of combating the crisis, the report said.
“We will refute the city’s claims, which have no basis in fact or law,” Johnson & Johnson said in a statement. It added that it “has done everything a responsible manufacturer of these important painkillers should do.”
The dealer did not immediately respond to a request for comment. In previous cases, he argued he complied with federal rules and blamed unscrupulous doctors and pharmacists for illegal prescriptions.
Baltimore is one of more than 3,000 local, Native American tribal and state governments across the country that have filed similar lawsuits against drug manufacturers, distributors and pharmacies over the opioid crisis. Most of these cases have been resolved through nationwide settlements, now totaling nearly $46 billion .
In 2022, Baltimore had 904 opioid overdose deaths out of a total population of about 569,000, while the national opioid overdose death rate was about 25 per 100,000 people.
Walking alone
The city, along with many other affected areas across the country, has decided to withdraw from the national agreement. It has reached settlements with several companies ahead of the trial , most recently with pharmacy operator Walgreens.(WBA.O) and drugmaker Teva Pharmaceutical Industries Ltd. (TEVA.TA) had total revenue of $402.5 million.
Exiting has both potential benefits and risks.
After losing at trial, San Francisco won a $230 million settlement from Walgreens , said to be the largest settlement awarded to any local government. Another opt-out state, West Virginia, received nearly $1 billion in an opioid settlement,It collects more per capita than any other state.
However, the city of Huntington, West Virginia, and its county have been dismissed after a judge dismissed it.It lost a public nuisance claim against McKesson, Cenacora and distributor Cardinal Health (CAH.N), similar to the situation in Baltimore. This means that if they are unable to overturn the decision on appeal, they will not receive any money from the dealer.
According to US government data, McKesson supplied nearly half of Baltimore’s opioids between 2006 and 2019. In 2017, the company reached a $150 million settlement with the US Justice Department, admitting it failed in its duty to prevent illegal drug sales across the country.
Judge Lawrence Fletcher-Hill, who will preside over this week’s trial, ruled that jurors would be allowed to hear the circumstances of the deal.
Cencora also currently faces a civil lawsuit from the Department of Justice for his alleged role in the opioid crisis .
According to data from the Centers for Disease Control and Prevention , more than 800,000 people in the United States died from opioid overdoses from 1999 to 2023.
The case is Baltimore Mayor and City Council v. Purdue Pharma et al., Maryland Circuit Court, Baltimore, No. 24-C-18-000515.
Baltimore: Bill Carmody by Susman Godfrey
Johnson & Johnson: Steve Brody of O’Melveny & Myers and Mike Brown of Nelson Mullins
McKesson Representatives: Tim Hester and Chris Eppich of Covington & Burling
Cenkora representative: Anne Bohnet of Reed Smith
Read more:
Baltimore reaches settlement with Teva, Walgreens ahead of scheduled opioid testing
McKesson receives record $150 million settlement over questionable drug orders
US sues AmeriResourceBergen, says dealers fueled opioid epidemic
Top US law firms earn hundreds of millions of dollars in fees in opioid lawsuits
Preliminary US data shows overdose deaths fell for first time in six years
