Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

J&J, other drugmakers go to trial in California in $50 billion case over 'deadly legacy' of opioids

Published 04/19/2021, 06:02 AM
Updated 04/19/2021, 06:46 PM
© Reuters. FILE PHOTO: A Teva Pharmaceutical Industries building is seen in Jerusalem

By Nate Raymond and Brendan Pierson

(Reuters) - Four drugmakers helped cause the deadly U.S. opioid epidemic by deceptively marketing their drugs and downplaying their addictive risks, a lawyer for several California counties argued on Monday at the start of multibillion-dollar trial.

Those counties accuse Johnson & Johnson (NYSE:JNJ), Teva Pharmaceutical Industries (NYSE:TEVA) Ltd, Endo International (NASDAQ:ENDP) Plc and AbbVie (NYSE:ABBV)'s Allergan (NYSE:AGN) unit of fueling a drug crisis that according to the U.S. government resulted in nearly 500,000 opioid overdose deaths over two decades.

The plaintiffs - the populous Santa Clara, Los Angeles and Orange counties and the city of Oakland - say the drugmakers should have to pay more than $50 billion to cover the costs of abating the public nuisance they created, plus penalties.

Their lawyer, Fidelma Fitzpatrick, told Orange County Superior Court Judge Peter Wilson that the case was about the companies' "deadly legacy" of trying to boost their profits by promoting opioid painkillers to treat chronic pain, resulting in a "mountain" of addictive pills flooding the state and country.

"The evidence will show each of these companies, all of them, knew what would happen: that their opioids would cause the crushing burden of addiction, overdose and death that California and its people have experienced," she said.

Defense lawyers countered that their drugs made up a small part of the overall opioid market, that doctors were fully warned of their risks and that the counties could not show that they caused the health crisis.

"You won't hear from a single doctor who was ever misled," said Collie James, Teva's lawyer.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Mike Yoder, J&J's lawyer, said that healthcare company's painkillers, which it no longer markets, were rarely abused.

"They did not cause any opioid crisis and they did not cause any public nuisance," he said.

More than 3,300 similar lawsuits are pending nationally over the opioid crisis. The only other case to go to trial in the opioid litigation resulted in the state of Oklahoma in 2019 winning a $465 million judgment against J&J, which is appealing.

Other cases are slated to go to trial in the coming months, creating new pressure for the companies to reach settlements.

The nation's three largest drug distributors - McKesson Corp (NYSE:MCK), AmerisourceBergen (NYSE:ABC) Corp and Cardinal Health Inc (NYSE:CAH) - and J&J have proposed paying a combined $26 billion to resolve the cases against them. The proposed deal has not been finalized.

Latest comments

what about the politicians who profited from them? I assume Pelosi had her hands in this somehow
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.