Ohio Opioid Lawsuit: Counties, Drug Companies Reach Settlement

CLEVELAND — One hour before a historic trial Monday, Cuyahoga and Summit counties reached a tentative $260 million settlement with four drug companies. The settlement averts a trial on a lawsuit claiming the companies are partly responsible for the deadly opioid epidemic that has ravaged Northeast Ohio.

The settlement with the four companies follows the collapse of an extraordinary effort Friday to reach a deal covering all the cases. Monday's settlement will cover only Cuyahoga and Summit counties.

"Our current systems are overwhelmed. With these funds we will save lives, get people back on track, and give families hope," said Cuyahoga County Executive Armond Budish, County Council President Dan Brady and County Prosecutor Michael C. O’Malley in a joint statement.

The settlement was first reported by the Wall Street Journal. Negotiations on the settlement took place through the night and into Monday morning, concluding just before the trial was set to begin.

More than 400,000 Americans have died since the onset of the opioid crisis in the early 2000s. Arguably, no state has been hit harder than Ohio. A Congressional report in 2016 called the Buckeye State the "face of the opioid" epidemic. In 2017 alone, more than 4,200 Ohioans died due to opioid overdose, the National Institute of Drug Abuse noted.

Monday's settlement could be historic for the precedent it sets in other similar lawsuits. Litigators across the nation will be watching for details, eager to see how the settlement plays out and the precedent it sets for future lawsuits.

The Teamsters reacted to the settlement, saying individual executives needed to be held responsible for their actions. The organization said settlements cannot become "just the price of doing business."

"There must be accountability for the business practices and failed oversight that fueled this deadly health crisis so that past mistakes are not repeated. We don’t believe that the companies’ shareholders or front line workers should shoulder the burden of these massive settlements, while directors and executives incur no consequences," said Ken Hall, International Brotherhood of Teamsters General Secretary-Treasurer.

In their lawsuit, Cuyahoga and Summit officials sought money from the drug manufacturers, money that could be used to help stymie the epidemic and create resources for residents battling addiction.

The counties were set to argue drug makers and distributors ignored laws dictating strict monitoring of opioid-based prescription sales and report outliers, the New York Times reported. The counties would have then argued their residents were brutalized by a decades-long pill dump.

Five companies were named in the lawsuit: Walgreens, AmerisourceBergen, McKesson, Cardinal Health, and Teva. Purdue Pharma and Johnson & Johnson have already reached settlements with the counties.

Walgreens was not included in Monday's settlement. The trial over the counties' lawsuit against the company has been postponed

Many of the companies being sued Monday have publicly denied responsibility for the crisis.

Walgreens — which was not one of the firms to reach a settlement with the counties Monday —said it stopped distributing prescription opioids to pharmacies in 2014 and before that only sent the medication to their stores. Pharmacists were responsible for distributing legitimate prescriptions before that, the company told Vox.

Another of the companies named in the lawsuit, Teva Pharmaceuticals, settled a similar, opioid-based lawsuit from the state of Oklahoma earlier this year. The company paid the state $85 million but denied any part in the spread of opioid use in the state. Following the settlement, the company said in a statement it was prepared to vigorously defend itself against the lawsuit from Cuyahoga and Summit counties.

"Teva recognizes the devastating impact to communities across the U.S. as a result of illegal drug use and the misuse and abuse of opioids that are available legally by prescription. Teva continues to advocate for collaborative solutions throughout the country," the company said. The statement added the company does not believe the opioid epidemic can be addressed "in the courtroom."

Monday's settlement could influence other lawsuits across the nation.