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Monday, December 23, 2024

Baltimore Secures $266 Million in Lawsuit Against McKesson and Cencora Over Opioid Epidemic

In a major legal victory, Baltimore has been awarded $266 million in damages after a jury found pharmaceutical giants McKesson and Cencora (formerly AmerisourceBergen) responsible for fueling the opioid crisis that continues to devastate communities across the United States.

The jury determined that McKesson, based in Texas, was liable for $192 million, while Cencora, a Pennsylvania-based drug wholesaler, was ordered to pay $74 million. The city accused both companies of failing to report suspicious opioid orders to federal authorities, a key aspect of their responsibilities under U.S. law.

Baltimore’s lawsuit claimed that the companies’ actions played a direct role in worsening the city’s opioid epidemic by allowing vast quantities of prescription drugs like oxycodone and hydrocodone to flood the market without proper oversight. The city is now pushing for an additional $9 billion in abatement funds from the companies to help address the ongoing crisis.

Baltimore Mayor Brandon Scott hailed the verdict as a victory for the city, emphasizing the outsized toll the opioid epidemic has taken on its residents. “The opioid overdose epidemic has taken a toll on every community in this country, but in Baltimore, it has touched every resident in some way, devastating families and entire neighborhoods,” Scott said.

The opioid crisis continues to claim lives at an alarming rate. According to the Centers for Disease Control and Prevention (CDC), 81,000 people in the U.S. died from opioid overdoses in 2023 alone, a slight decrease from the previous year. In Baltimore, an average of 866 people died annually from opioid-related causes between 2017 and 2021, according to state data.

The Lawsuit’s Origins

This legal battle began in 2018, when Baltimore filed a lawsuit against McKesson, Cencora, and other pharmaceutical companies, distributors, and medical providers. The lawsuit accused these entities of exacerbating the opioid epidemic by failing to flag suspicious drug orders that could indicate illicit activity.

Bill Carmody, the lead attorney representing Baltimore, called the jury’s decision a significant step toward holding the companies accountable for their role in the epidemic. “Justice was served. No city in America has been hit harder by the opioid crisis than Baltimore,” Carmody said. “This is an important step toward helping the city recover and continue its mission to be one of the best places in America where all of its citizens can live healthy lives and succeed.”

Baltimore’s Separate Litigation Strategy

Unlike many cities that joined a national settlement with pharmaceutical companies over the opioid crisis, Baltimore chose to pursue its own legal action for larger compensation. The city has already secured over $400 million in settlements with other companies, including CVS, Walgreens, Johnson & Johnson, and Teva.

Court filings revealed that McKesson and Cencora, along with Cardinal Health, had failed to properly report suspicious orders of opioids, allowing the drugs to enter communities and fuel addiction. In a 2017 settlement with the U.S. Department of Justice, McKesson admitted to failing to report some of these orders and paid $150 million in penalties. Cencora (formerly AmerisourceBergen) is also facing federal lawsuits for its role in the opioid crisis.

The Companies’ Response

Following the jury’s decision, both McKesson and Cencora expressed their intention to challenge the verdict. Mike Iorfino, a spokesperson for Cencora, said the company was “disappointed” with the ruling and believed it misrepresented the facts of the case. “Our teams are analyzing the ruling and evaluating all options moving forward, including appealing today’s verdict,” Iorfino stated.

McKesson also voiced its disagreement, claiming that the jury misunderstood the company’s role as a distributor of pharmaceutical products. “We respect but disagree with the jury’s verdict,” a company spokesperson said, adding that McKesson plans to file motions to challenge the decision.

Impact on Baltimore and the Opioid Crisis

With the $266 million verdict, Baltimore’s total restitution from opioid-related litigation now exceeds $668 million. The city has pledged to use these funds to support programs focused on opioid addiction prevention, treatment, and recovery. Mayor Scott called the amount a “game-changing figure” in the battle against the epidemic.

Baltimore represents just 9% of Maryland’s population, yet it accounts for 44% of the state’s overdose deaths, according to local health data. The city has seen an average of two overdose deaths per day, with many cases tied to the misuse of prescription opioids that later led to addiction to street drugs.

Data from the CDC shows that nearly 125 million opioid prescriptions were dispensed in 2023 across the United States, with variations between states. The agency also noted that nearly 8.6 million Americans aged 12 and older reported misusing prescription opioids.

As Baltimore continues its fight to recover from the devastation caused by the opioid epidemic, the city’s legal victories and the compensation it has secured may provide crucial funding to address this public health crisis.

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