In June 2017, the state of Oklahoma sued several pharmaceutical companies for their alleged roles in the state’s opioid epidemic. Some of the companies, including Purdue Pharma LP, Teva Pharmaceuticals, and Johnson & Johnson, represent some of the biggest names in the pharmaceutical industry and much news has been made over this lawsuit and other similar lawsuits around the country.
The Oklahoma lawsuit alleges that the 1996 introduction of OxyContin by Purdue marked a shift in the way drug companies promoted opioids, downplaying the risk of addiction and promoting them for widespread pain. It seeks to hold pharmaceutical companies financially accountable for the opioid crisis.
The Oklahoma trial began on May 28, 2019, but just as the lawsuit was set to be heard, a second defendant company settled – Teva agreed to pay $85 million to the state of Oklahoma in a last-minute settlement with the state. Teva did not admit to any wrongdoing and the settlement money will be used to “abate the opioid crisis” in Oklahoma, where opioids were responsible for close to 400 deaths in 2017, amounting to a rate of 10.2 deaths per 100,000 people.
At this stage, not much is known about the specific terms of the settlement, though we expect them to be finalized over the next couple of weeks.
The Teva settlement follows a March 2019 settlement by Purdue Pharma LP, where Purdue agreed to pay $270 million but did not admit to any wrongdoing. As part of the settlement, Purdue also agreed to not promote opioids in Oklahoma through December 2026, including not employing or contracting with sales representatives to health care providers in the state.
Johnson & Johnson Standing Trial Alone
Teva’s settlement with Oklahoma leaves Johnson & Johnson and its subsidiaries as the only remaining defendants in the case. During opening statements, the Oklahoma Attorney General Mike Hunter focused on the heavy burden opioid misuse and addiction has placed on the state – AG Hunter said the state saw 4,653 unintended overdoses involving prescription opioids from 2007 to 2017, and that there were more than 28,000 admissions for opioid and heroin treatment through state services between 2012 and 2018. He also noted that the state is ranked seventh in the nation for prescription pain reliever abuse for children aged 12 to 17.
By and large, opioid manufacturers have acknowledged the opioid epidemic that has taken the United States by storm, but they do not believe they should receive all the blame – they argue that they have complied with all labeling regulations put forth by the United States Food and Drug Administration (FDA) and believe that the states are trying to hold them financially responsible for physicians who over-prescribe, street drugs that are trafficked by international drug cartels, and the failure of the state to enforce its own drug laws.
Johnson & Johnson has also made the argument that the state itself should be shouldering some of the blame, as its own drug review board and prescription monitoring program ignored and neglected to come down on sources of diverted opioids for years.
Johnson & Johnson also argues that its drugs accounted only for a small fraction of the drugs taken in Oklahoma and that it isn’t prescription drugs, but illegal heroin and fentanyl that are causing the overdose deaths.
In the weeks leading up to trial, Oklahoma trimmed its case to the sole claim that Johnson & Johnson created a “public nuisance” in the state through its marketing of prescription drugs.
The trial is heard by Cleveland County District Judge Thad Balkman and is expected to last several weeks. At the outset of trial, Judge Balkman reminded the media and other attendees, “this is a court of law, not a court of public opinion.”
Lasting Impact
This Oklahoma lawsuit is just one of over 2,000 that have been filed in federal and state court against opioid drug manufacturers. Even though Oklahoma represents only 1.2% of the United States population, these settlements may have a lasting impact on the rest of the litigation occurring throughout the country. Highlighting that fact was a tweet made by the Mayor of Sioux Falls, South Dakota, Paul Ten Haken, which read, “The Oklahoma case is being closely watched by plaintiffs in other opioid cases, including South Dakota and 1,850 other mostly municipal and state governments that have sued the same drugmakers.”
To put the Teva settlement into perspective, the potential liability for state settlements based on that Oklahoma has 1.2% of the US population and an average range in the number of opioid deaths, Teva could have a state liability of $7.083 Billion. The net worth of Teva stock is roughly $10 billion so this settlement could impact as much as 70% of the total net worth of the company.
Further, this trial represents the first time where evidence will come into the public forum – evidence that has typically been placed under confidentiality agreements or otherwise not released to the public. The transparency that the trial will bring about will likely influence the other cases pending around the country.
Every day the Oklahoman covers the trial.
Day 1 Opening Statements
Day 2 Testimony from a parent of opioid victim and Johnson and Johnson spokesperson.
Day 3 More testimony from Johnson and Johnson
Day 4 Johnson and Johnson Sales Representative Notes