Opioid manufacturers, distributors and pharmacies are facing thousands of lawsuits from cities, town, and counties across the country. A bellwether trial involving Cuyahoga and Summit counties in Ohio is set for October. Defendants can either settle out of court of face the potential wrath of Judge Dan Polster who is overseeing the trials. Last week Purdue Pharma entered a global settlement for $3 billion up front:
How the $3 billion payment will be divvied up among cities, towns and communities across the country remains to be seen. For now, the Sacklers have settled claims against it from thousands of communities. Pursuant to the proposal, future OxyContin sales will go into a trust to help communities suffering from the opioid epidemic.
A bevy of state attorneys general like Letitia James of New York and William Tong of Connecticut are not happy with the settlement. They plan to go after more of the Sacklers’ personal wealth. Whether they will be successful or how long it would take to extract more money from the Sacklers remains to be seen.
This was the first opioid settlement of its kind. Cities, counties and towns across the country agreed to it. Purdue’s bankruptcy could have a wide-reaching impact on other opioid manufacturers like Teva (TEVA), Endo International (ENDP) Mallinckrodt (MNK) and Johnson & Johnson (JNJ). Shocking The Street, a premium investment service in conjuntion with Seeking Alpha, explained how the goings on with Purdue could impact these firms Read more: