Tampa, FL (WorkersCompensation.com) – With many new cases being filed related to the opioid crisis, some companies are deciding to settle as opposed to going to trial. Endo has agreed to pay $10 million in a case brought by two different counties in Ohio who made accusations against multiple companies related to the manufacture and distribution of opioids.
As part of the agreement, Endo will agree to provide up to $1 million of its two drugs free of charge. This is the first deal in connection with many lawsuits that have been consolidated before a federal judge.
The settlement can send signals to other plaintiffs in the litigation that they may also be able to reach an agreement with the opioid makers to avoid litigation or the possibility of a loss. The settlement can also send a signal to the other defendants in lawsuits that they too could reach an agreement and avoid having judgments entered against them.
Many other companies have not settled. Some have even been accused of siphoning off money from the companies in order to save themselves from having to pay judgments. Some plaintiffs may seek judicial remedies to stop these actions.
Endo took its painkiller off the market around in 2017. However, this does not necessarily imply that the company did anything wrong. This could be considered a subsequent remedial measure in which case the defendants may challenge the admissibility of this evidence in court. However, this argument will likely not be successful because the drug was taken off the market at the request of the FDA.
Endo reformed the ingredients of Opana ER in 2011 and the FDA approved it. This came after the FDA determined that the drug failed standards regarding issues related to the potential abuse of the drug. Endo changed the drug in 2012 and asked the FDA to change the reason that that the 2011 version was disapproved. However, the FDA denied that request.
Endo’s drug, Opana ER, was a painkiller comprised of oxymorphone hydrochloride. The drug was an extended release pain killer that was originally approved by the FDA in 2006. It was the first time an opioid had been taken off the market due to concerns about abuse. Part of that abuse included injecting the drug, which can have harmful and addictive effects. The drug was not to be combined with alcohol and was classified as a controlled substance.
Endo does not necessarily want other defendants to look at its settlement as a potential valuation of what future settlements will look like. However, they do not have control over what the other defendants do.
Endo’s share price jumped after the settlement was reached. Litigation hanging over a company’s head is bad for business because it creates uncertainty with respect to how much they might have to pay out.
Endo is currently facing approximately 2,300 lawsuits in 18 different states. Some believe the payouts from all of their lawsuits may reach into the billions.