U.S.
to seek reimbursement from opioid makers, distributors
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[February 28, 2018] By
Sarah N. Lynch
WASHINGTON (Reuters) - The federal
government, backing litigation by states and cities, will seek
reimbursement from major drug companies and distributors to recover
costs it has borne from the opioid epidemic, the U.S. Justice Department
said on Tuesday.
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Attorney General Jeff Sessions said Washington would side with
plaintiffs in the litigation that accuses the drug makers of
deceptively marketing opioids and alleges that distributors ignored
red flags indicating the painkillers were being diverted for
improper uses.
"The hard-working taxpayers of this country deserve to be
compensated by any whose illegal activity contributed to these
costs," Sessions said.
In 2016, the last year with publicly available data, 42,000 people
died from opioid overdoses, according to the U.S. Centers for
Disease Control and Prevention.
In the latest step by the Justice Department to tackle the opioid
epidemic, the department said it would file a "statement of
interest" in litigation consolidated in a federal court in
Cleveland.
Named in the litigation are opioid manufacturers Purdue Pharma LP,
Johnson & Johnson, Teva Pharmaceutical Industries Ltd, Endo
International PLC and Allergan PLC and the three biggest drug
distributors in the country - AmerisourceBergen Corp, Cardinal
Health Inc and McKesson Corp..
The consolidated litigation pending before U.S. District Judge Dan
Polster involves at least 355 lawsuits filed by cities, counties and
others.
Polster has been pushing for a quick, global settlement in the
litigation and has invited state attorneys general who have cases in
state courts or who are conducting a multistate probe of the
companies to participate in those talks.
The first settlement hearing was held in January. A second one is
expected March on 6.
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In a statement, Oxycontin maker Purdue said it was "fully engaged"
in the process the judge had set forth, and had taken steps to
address the crisis.
Johnson & Johnson said that while it was committed to combating the
problem, the allegations against it "are baseless and
unsubstantiated." Representatives for the other manufacturers did
not respond to requests for comment.
A trade group representing the three distributors said the industry
was committed to reducing the misuse and abuse of opioids.
The Justice Department is not expected to participate in the
settlement discussions. Its statement of interest in the litigation
will allow it to eventually get a share of the final settlement the
companies pay.
Plaintiffs' lawyers have not quantified the potential costs involved
in the cases but have compared them with the litigation by states
against the tobacco industry that led to 1998’s $246 billion
settlement.
Also on Tuesday, Sessions announced the creation of a task force to
combat the opioid crisis by seeking criminal and civil remedies and
said he had appointed a federal prosecutor to lead the government's
battle.
(Additional reporting Makini Brice in Washington and Nate Raymond in
Boston; Editing by Andrea Ricci and Peter Cooney)
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