Drugmaker ordered to pay $572M in opioid case
Judge finds company liable for Oklahoma’s crisis
NORMAN, Okla. – An Oklahoma judge on Monday found Johnson & Johnson and its subsidiaries helped fuel the state’s opioid crisis and ordered the consumer products giant to pay $572 million, more than twice the amount another drug manufacturer agreed to pay in a settlement.
Cleveland County District Judge Thad Balkman’s ruling followed the first state opioid case to be tried and could help shape negotiations over roughly 1,500 similar lawsuits filed by state, local and tribal governments consolidated before a federal judge in Ohio.
“The opioid crisis has ravaged the state of Oklahoma,” Balkman said before announcing the verdict. “It must be abated immediately.”
The companies are expected to appeal the ruling to the Oklahoma Supreme Court.
Before Oklahoma’s trial began May 28, the state reached settlements with two other defendant groups – a $270 million deal with OxyContin-maker Purdue Pharma and an $85 million settlement with Israeli-owned Teva Pharmaceutical Industries Ltd.
Wisconsin Attorney General Josh Kaul sued Purdue Pharma in May, alleging the company used deceptive marketing practices that helped fuel a national addiction epidemic. The case is pending in Dane County Circuit Court.
Oklahoma argued the companies and their subsidiaries created a public nuisance by launching an aggressive and misleading marketing campaign that overstated how effective the drugs were for treating chronic pain and understated the risk of addiction. Oklahoma Attorney General Mike Hunter said opioid overdoses killed 4,653 people in the state from 2007 to 2017.
Hunter has called Johnson & Johnson a “kingpin” company that was moti
vated by greed. He specifically pointed to two former Johnson & Johnson subsidiaries, Noramco and Tasmanian Alkaloids, which produced much of the raw opium used by other manufacturers to produce the drugs.
On Monday, Hunter said the Oklahoma case could provide a “road map” for other states to follow in holding drugmakers responsible for the opioid crisis.
“That’s the message to other states: We did it in Oklahoma. You can do it elsewhere,” Hunter said. “Johnson & Johnson will finally be held accountable for thousands of deaths and addictions caused by their activities.”
“They’ve been the principal origin for the active pharmaceutical ingredient in prescription opioids in the country for the last two decades,” Hunter said after the trial ended July 15.
“It is one of the most important elements of causation with regard to why the defendants ... are responsible for the epidemic in the country and in Oklahoma.”
Attorneys for the company have maintained they were part of a lawful and heavily regulated industry subject to strict federal oversight, including the U.S. Drug Enforcement Administration and the Food and Drug Administration, during every step of the supply chain.
Attorneys for the company said the judgment was a misapplication of public nuisance law.
Sabrina Strong, an attorney for Johnson & Johnson and its subsidiaries, said the companies have sympathy for those who suffer from substance abuse but called the judge’s decision “flawed.”
“You can’t sue your way out of the opioid abuse crisis,” Strong said. “Litigation is not the answer.”
Oklahoma pursued the case under the state’s public nuisance statute and presented the judge with a plan to abate the crisis that would cost between $12.6 billion for 20 years and $17.5 billion over 30 years. Attorneys for Johnson & Johnson have said that estimate is wildly inflated.
Also on Monday, the Kentucky Supreme Court declined to review an earlier ruling making previously secret testimony from former Purdue Pharma President Rickard Sackler and other documents public. The court record was sealed in 2015 as part of a $24 million settlement between Purdue and Kentucky.
The 17 million pages of documents were being shipped Monday from Frankfort to Pike County, where the case originated.
The Pike County Circuit Court Clerk’s office could not immediately say how and when they would be available.