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Local government lawyers across the country unveiled Friday a plan that they believe would bring the country closer to a comprehensive settlement of prosecutions resulting from the deadly opioid crisis.
Final payments could rival the massive tobacco colonies of the 1990s. Such an agreement, if finalized, could unlock tens of billions of dollars for communities struggling with the opioid addiction crisis, while restoring stability of one of the country's largest industries.
"There must be a comprehensive approach to tackling the national epidemic, and that's a step forward," said Joe Rice, co-chair of the council of lawyers who filed the motion, representing hundreds of communities pursuing Big Pharma.
He said the framework, which lawyers plan to file in a federal court in Ohio and yet to be approved by the court, would channel funds to more than 25,000 communities in the United States to help them. fight against the opioid crisis. It would also provide businesses with a solution to the tsunami litigation.
"The defendants do not have a clue as to how they get the fence, how can they solve this problem," Rice said. "So they asked us for a roadmap."
In all, more than 1,800 lawsuits have been filed to date against drug manufacturers such as Johnson and Johnson, distributors such as McKesson and street pharmacies such as CVS and Walmart. The plaintiffs claim that businesses have made billions of profits by marketing and selling prescription opioids.
(Note: Walmart is one of NPR's financial backers.)
Overdoses related to prescription painkillers have killed more than 200,000 Americans, according to the Centers for Disease Control and Prevention, and cost taxpayers billions of dollars.
The wave of civil suits has already forced a drug maker, Insys Therapeutics, out of business. Another big company, Purdue Pharma, said it could do the same. Judge Dan Polster, who oversees the trial of hundreds of consolidated opioid cases, has repeatedly urged communities and businesses to reach an agreement.
This has not been done yet, but intense negotiations continue and sources told NPR that they expected many of the two dozen drug industries involved in the case to be consolidated in Ohio accept a substantial payment. In the end, there may be several regulations, involving separate companies or groups of companies, all of which contribute to a national fund designed to mitigate the opioid epidemic.
"Tens of billions of dollars would be needed to make a significant impact on this epidemic," Rice told NPR.
Under this plan, almost all communities in the United States – towns, villages and counties – would be grouped into a single "bargaining class". Under this legal designation, local leaders would be able to approve or disapprove settlements with pharmaceutical companies. The vote would be weighted by the population.
If three-quarters of the communities sign agreements, the agreement will be finalized and the money will be paid, thus ending the company's responsibility. With a separate emergency fund, about 15% of settlements would be reserved for cities particularly affected by the opioid crisis. Ten percent of all payments in the drug industry would be used to pay the hundreds of private lawyers involved in litigation.
Communities that do not wish to participate in any global settlement may also choose not to participate, but Rice explained that this plan was developed in consultation with many local officials and legal teams in the United States who were continuing to participate. drug industry.
At the same time, pressure has increased on pharmaceutical companies in recent months to reach some kind of agreement with communities. In March, Purdue Pharma signed a budget of approximately $ 270 million with the state of Oklahoma. Prior to its bankruptcy, Insys Therapeutics had agreed to pay the federal government more than $ 225 million in fines related to opioid marketing. Five of these leaders were convicted of racketeering by the federal government. Johnson & Johnson is currently on trial in a state court in Oklahoma.
With the much larger Ohio affair set to begin in October, the pressure and the public will only grow. Judge Polster refused to dismiss lawsuits against pharmaceutical companies and he made it clear that the drug industry was partly responsible for the opioid epidemic. .
During a preliminary hearing in January 2018, Polster urged the parties to reach an agreement that "would bring money back to government agencies for treatment." Because, unfortunately, every day, more and more more people are addictive and need treatment. "
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