Posted on 06/10/24
| News Source: FOX45
Baltimore, MD - June 10, 2024 - On Monday, the City of Baltimore announced they reached a $45 million settlement with Allergan Finance, LLC to resolve their claims in an ongoing litigation against the distributors and manufacturers that allegedly fueled the opioid epidemic.
Allergan will pay the entire $45 million settlement amount within 30 days.
Officials say the City’s deal with Allergan is an unprecedented recovery in the nationwide opioid litigation and confirms that the City was prudent in opting out of the global settlements that opioid defendants reached with nearly every other state, county, and city in America over the past few years.
Allergan’s proposed global settlement would have allotted the City only about $7 million spread over 7 years.
The current settlement provides over 6 times that amount in an immediate lump sum payment.
The City’s settlement is also larger than the settlements Allergan reached with many states, including the State of Maryland, which earlier this year announced a $38 million settlement with Allergan, spread over 7 years.
“We are fully aware of the devastating toll that the actions of these defendants have taken on our City, and we have shown our commitment to ensuring that they pay their fair share to tackle the harms they have left in the wake of their greed,” said Mayor Brandon M. Scott. “We are committed to ensuring that every penny of this and any other amount recovered is put to its most effective and best use to combat the opioid epidemic in Baltimore City at all levels.”
“Our legal team is confident in the value of our case, and we will not be settling for anything that does not take into account the significant resources needed to overcome the widespread effects of the defendants’ actions,” said Ebony Thompson, Baltimore City Solicitor.
Officials say Allergan’s two opioid drugs, Kadian and Norco, made up less than half a percent of the opioids sent to Baltimore pharmacies. The defendants remaining in the City’s lawsuit were responsible for over 80% of the opioids targeted at Baltimore pharmacies, meaning this settlement with Allergan confirms the multi-billion-dollar value of the City’s entire case.
In addition to these allocations, Mayor Scott is announcing the creation of a board that will oversee how opioid settlement money is spent.
“We are proud to partner with Mayor Scott and the City of Baltimore to fight this deadly epidemic and bring justice to everyone affected by it,” said Susman Godfrey Partner Bill Carmody, who is leading the outside legal team on this matter.
He is joined by Partners Seth Ard and Sy Polky. Sara Gross and Thomas Webb of the Baltimore City Department of Law also represent the City in this case.
Litigation proceeds against defendants Johnson & Johnson, McKesson, Cardinal Health, AmerisourceBergen, Walgreens, CVS, Teva, and former Insys CEO John Kapoor. The case is set for trial on September 16.