In 2020, over 142 million prescriptions for opioid medications were filled in the U.S. That same year, 16,416 people died from overdoses on prescription opioids—a 376% increase from 1999.
The pharmaceutical companies behind these heartbreaking statistics are at long last being held accountable for their role in igniting and fanning the flames of our nation’s opioid crisis. Recent landmark settlements of $523 million, $230 million, and $200 million, of many, are part of the ongoing upheaval of the opioid industry that is bringing not just financial compensation for victims, but also ensuring these drug companies never irresponsibly sell opioids again.
Accountability We’re Seeing: Highlights
Treatment and Abatement Programs. The Sackler family, owners of now defunct Purdue Pharma that first put OxyContin on the market in 1995, will fund opioid abatement programs as part of a proposed national $6 billion settlement. This will include providing communities with free or very discounted opioid overdose rescue medication, as well as medically assisted treatment medications. The settlement dissolves Purdue Pharma and will convert it into a public benefit company “owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest.” Proceeds from the trust will go toward State and local opioid treatment programs, which, in addition to medication, will provide outreach and engagement, education, research, community prevention coalitions, and other support services.
Sale Restrictions. A number of opioid crisis settlements have barred drug companies from the continued sale of opioids. Pharmaceutical company Allergan, for instance, in addition to paying New York State a $200 million settlement, is prohibited from “promoting opioids or opioid products through sales representatives, sponsorships, financial support, or any other means” for the next ten years. Similarly, Johnson & Johnson no longer sells opioids as of 2021, and has agreed to pay New York State a $230 million settlement. The settlement with J&J notably forbids the company from disciplining its sales and marketing employees for not meeting opioids sales quotas—a major contributing factor to opioids’ aggressive marketing to the American public.
Lobbying Ban. Drug companies and allied groups average 1,350 lobbyists each year covering all fifty state capitals. In the past decade, drug companies and their allies spent more than $880 million on lobbying and political contributions at the state and federal level, which in part funded legislation and regulations related to opioids. What’s more, the opioid industry and its allies in particular contributed to over 7,000 candidates for state-level offices. Thanks to settlements secured by New York Attorney General Letitia James, Partner Hunter Shkolnik, and others, drug industry giants such as Allergan and the “Big Three,” McKesson, Cardinal Health, and AmerisourceBergen, are forbidden from lobbying federal, state, or local legislative or regulatory authorities about opioids or opioid products.
Increased Oversight. A major contributing factor to the flooding of the pharma market with opioids was a lack of oversight by pharmacies and manufacturers. In 2021, our firm represented Nassau County in New York Attorney General James’ statewide lawsuit against Teva Pharmaceuticals USA, Inc. and five other drug companies. A jury found the companies responsible for creating a public nuisance in Nassau County by minimizing the addictiveness of opioids with misleading marketing, and Teva reached a $523 settlement with New York State. As a result, Teva is required to operate under a monitor, prevent all opioid marketing, and ensure systems are in place to prevent drug misuse. CVS and Walgreens, two other companies named in the lawsuit, agreed to monitor, report, and share data about suspicious activity related to opioid prescriptions.
While opioid medication does have its place in the world of medicine, it is important that they are manufactured, distributed and prescribed responsibly. After decades of pain and suffering, victims and survivors of the opioid crisis are finally getting the financial compensation and treatment resources they deserve. Moreover, the terms of these settlements set a monumental new precedent where drug companies are accountable before harm is done—not after.
