Endo International Plc Reaches $50 Million Settlement with New York State and Counties
On September 9, 2021, Endo International plc announced a settlement with New York state and two New York counties over its sale and marketing of opioids. The plaintiffs had alleged that Endo (and others) falsely marketed opioids, failed to effectively monitor and report suspicious orders of opioids and/or implement measures to prevent the diversion of opioids, thereby contributing to an increase in opioid overdose and addiction and furthering a public health crisis in the State of New York, Suffolk County, and Nassau County.
The settlement encompasses a “full, final, and complete release of Plaintiffs’ claims against Endo/Par and other Released Entities and totally and completely bars any further future claims or demands of any kind or character whatsoever as a result of or relating to the Covered Conduct.” However, the following claims are not released by this settlement: any claims asserted by the New York State Department of Financial Services under New York Insurance Law and the New York Financial Services Law; claims against Arnold & Porter Kaye Scholer LLP in addition to the relief sought pursuant to NYSCEF Docket Numbers 8239, 8247, 8510, and 8515; claims asserted by Plaintiffs in five ongoing lawsuits; and claims brought by New York municipalities and subdivisions with the exception of the claims brought by the three trial Plaintiffs. Therefore, this settlement is not considered a “statewide opioid settlement.”
As one may expect there is no admission of liability or wrongdoing by Endo or any of its subsidiaries.
Of the $50 million, $22.3 million will go to New York state and the remaining $27.7 million will be split evenly between Nassau County and Suffolk County. The $22.3 million for New York state will go towards abatement in communities that were impacted by the opioid epidemic, not to the state’s general fund. Additionally, if Endo files for bankruptcy in the future or if a global settlement is reached between Endo and a larger group of plaintiffs, all three plaintiffs will be able to receive an appropriate share under such bankruptcy or global settlement.
The settlement was reached on the heels of the proposed national $26 billion settlement, in which McKesson Corp., Amerisource Bergen, Cardinal Health, and Johnson & Johnson agree to resolve outstanding opioid cases against them.
“While litigation of the remaining opioid claims is ongoing, Endo is focused on its primary goal of achieving a global settlement,” Endo said. “Endo is also currently exploring other strategic alternatives and may seek to implement one or more of those alternatives in the event it is unable to achieve a global settlement.”
This settlement releases Endo from the ongoing litigation in Suffolk County – that trial against the two remaining defendants (Teva Pharmaceuticals and AbbVie) is still ongoing.