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Baltimore Wins $266 Million Settlement from Pharmaceutical Companies
A jury has ordered McKesson and Cencora to pay a total of $266 million to Baltimore. The jury found the companies liable for contributing to the opioid crisis in the city. McKesson, based in Texas, owes $192 million, while Cencora, based in Pennsylvania, must pay $74 million.
Baltimore accused the companies of failing to report suspicious orders of prescription drugs. These drugs include oxycodone and hydrocodone, which fueled the city’s opioid epidemic. Next month, Baltimore plans to ask the court for $9 billion to address the ongoing crisis.
Mayor Brandon Scott praised the jury’s decision. He stated that the impact of the opioid epidemic has deeply affected every community in Baltimore, harming families and neighborhoods.
Background of the Lawsuit
The lawsuit that led to this verdict was filed in 2018. Baltimore’s law firm, Susman Godfrey, represents the city. This decision marks the first successful verdict against McKesson and Cencora in opioid litigation. Baltimore chose to pursue its own lawsuits instead of joining a national settlement with pharmaceutical companies, seeking larger damages.
In addition to the recent verdict, Baltimore has secured over $400 million from other companies, including CVS and Walgreens, for their role in the opioid crisis. Baltimore stated that it aims to hold the companies accountable for their part in the epidemic.
Ongoing Challenges for Cencora and McKesson
Both companies are preparing to challenge the jury’s verdict. Cencora expressed disappointment and believes the decision does not reflect the facts. McKesson plans to file motions to contest the ruling and, if denied, will appeal.
Significant Impact on Baltimore
The recent court decision raises Baltimore’s total restitution funds to more than $668.5 million. This funding will support programs for treatment, prevention, recovery, and harm reduction related to substance use.
Despite accounting for only 9% of Maryland’s population, Baltimore reports 44% of the state’s overdose deaths. The city’s health department notes that Baltimore averages over two overdose deaths per day. The majority of opioid use disorder cases in the city began with prescription opioids before shifting to illicit drugs.
Overall, this verdict represents a significant step toward addressing the opioid crisis in Baltimore and ensuring accountability from pharmaceutical companies.