However, these settlements do not cover all of the claims currently pending against the three pharmacies. In the proceeding captioned In Re National Prescription Opiate Litigation , No. 22-3750 (6th Cir.) the Sixth Circuit is considering whether enforce a $650 million dollar judgement against the pharmacies for fueling the opioid epidemic in two Ohio counties – Trumbull and Lake counties. The Sixth Circuit has asked Ohio ’ s Supreme Court to weigh in, and determine whether state law permits the public-nuisance claim, a type of claim that is generally asserted to address public problems such as chemical spills. Opioid litigation has led state and local governments to use public nuisance claims to address social issues. Specifically, this case alleges that the companies’ marketing and distribution of opioids constituted a public nuisance. Trumbull County alleges that between 2000 and 2014, the pharmacies distributed 68 million doses of opioids, or the equivalent of 320 pills for every resident. Rite Aid In October 2023, Rite Aid, one of the largest pharmacy chains in the United States, filed for bankruptcy as a result of opioid litigation. Rite Aid is currently billions of dollars in debt and facing over one thousand federal, state, and local lawsuits for opioid mishandling. For example, on March 13, 2023, the United States intervened in a whistleblower lawsuit against Rite Aid, alleging that the pharmacy violated the Controlled Substances Act (CSA) and that “from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice.” Id. at 2. The case is captioned United States ex rel. White, et al. v. Rite Aid Corp., Case No. 21-CV-1239 (N.D. Ohio). The original whistleblower lawsuit was filed by three former Rite Aid employees under the qui tam provisions of the False Claims Act (FCA). Unlike many of its competitors, Rite Aid has not worked out a settlement for the pending cases. Rite Aid is the first pharmacy chain to file for Chapter 11 bankruptcy as a consequence of the opioid litigation, and has already closed about 200 store locations, some of which are the only pharmacy available in certain communities. Purdue Pharma In 2019, Purdue Pharma filed for bankruptcy, leading to a proposed settlement plan to resolve the litigation and provide funding for addiction treatment and prevention. However, not all states and localities agreed to the settlement, leading to ongoing negotiations and disputes. In March 2022, the company reached a $6 billion settlement with 48 states. A recent, noteworthy proceeding from this litigation came from the very top. To prevent additional lawsuits, in 2019, Purdue Pharma filed for bankruptcy and proposed a plan that would make the company a non- profit and shield the Sackler family (the owners of the holding company) from further liability. Under the settlement, the Sacklers would receive immunity in exchange for contributing up to $4.5 billion of the $6 billion settlement for lawsuits filed by states, hospitals, people who had become addicted and others who have sued the company over misleading marketing of the powerful painkiller OxyContin. On August 10, 2023, the U.S. Supreme Court agreed to hear a challenge by President Joe Biden ’ s administration regarding the legality of the bankruptcy settlement. U.S. Solicitor General Elizabeth Prelogar noted that if the bankruptcy plan was allowed to move forward, it would leave in place a roadmap for wealthy corporations and individuals to misuse the bankruptcy system to avoid mass tort liability. The U.S. Supreme Court justices paused bankruptcy proceedings concerning Purdue and its affiliates and indicated they would hold oral arguments as to the challenges.
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Duane Morris Product Liability And Mass Torts Class Action Review – 2024
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