Today could be the day when opioid deal is reached
CLEVELAND — The five-year legal battle over responsibility for the U.S. opioid epidemic is at a crucial juncture as drug company chief executives, state attorneys general and lawyers for 2,600 cities and counties meet here today to discuss a potential resolution of the landmark litigation, say people familiar with the matter.
With a federal jury already sworn in and opening arguments in the high-stakes trial scheduled for Monday, U.S. District Court Judge Dan Polster summoned all sides to his courtroom. His involvement could signal that negotiations are progressing to a potential settlement that could avert a two-month trial. That proceeding seeks billions of dollars from six drug companies to pay for the fallout of the worst drug crisis in U.S. history.
CEOS of the major companies are expected to be present, an unusual circumstance for a settlement conference. Attorneys general of North Carolina, Pennsylvania, Texas and Tennessee also will participate, along with the lead lawyers for the counties, cities, Native American tribes and
other groups that have filed suit against the drug companies.
They will discuss a settlement currently valued at about $50 billion in cash and drugtreatment medications, according to those close to the negotiations who spoke on the condition of anonymity.
Both sides have much to gain from a negotiated settlement, which Polster has encouraged for nearly two years. For states, cities and counties, a deal would speed badly needed cash and medication to communities that have been paying for drug treatment, emergency services and law enforcement related to the crisis. An agreement would avoid years of delay connected to multiple trials and subsequent appeals.
The companies would end thousands of lawsuits that are costing them millions of dollars in legal fees and continuous negative publicity. Trials in open court also could bring out additional damaging information about how they handled narcotics.
But the deal has yet to win approval of the lawyers in charge of the city and county lawsuits. “We await the fine print of the settlement framework so that we can work alongside the 2,600 communities we represent to determine the best path forward,” they said released Wednesday night.
Complicating the negotiations is public feuding over control of the litigation between the states and municipalities. Ohio Attorney General Dave Yost, supported by several other states, unsuccessfully argued in appellate court to stop the federal litigation and give control of the issues to state attorneys general.
Another snag may be fees for those private lawyers who would claim a substantial portion of any settlement after years of working on the lawsuits.
On Thursday, Polster swore in a jury of six men and six women. Opening arguments are scheduled for Monday.
The companies involved in the settlement talks include drug distributors Mckesson Corp., Dublin-based Cardinal Health and Amerisource Bergen, Israel-based drug manufacturer Teva Pharmaceuticals and Walgreen. All five are defendants in the upcoming trial, in which two Ohio counties are seeking more than $8 billion dollars to cover their costs.