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  #1  
Old 08-26-2019, 06:59 PM
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Lucy Lucy is offline
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Default J&J liable for Oklahoma opioid epidemic

https://www.reuters.com/article/us-u...-idUSKCN1VG0V2
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Originally Posted by reuters

J&J liable for $572 million in Oklahoma opioid epidemic trial, shares rise

NORMAN, Okla. (Reuters) - An Oklahoma judge on Monday ordered Johnson & Johnson (JNJ.N) to pay $572.1 million to the state for its part in fueling an opioid epidemic by deceptively marketing addictive painkillers.

J&J said it would to appeal the decision, though the award was below what some investors and analysts had feared, in what had been a $17 billion lawsuit considered a bellwether for other litigation nationwide over the opioid epidemic.

"The expectation was this was going to be a $1.5 billion to $2 billion fine," said Jared Holz, healthcare strategist for Jefferies. "$572 million is a much lower number than had been feared."

Shares of J&J were up 2% in extended trading following the decision. Other drugmakers that sell opioid painkillers also rose after-hours, including Teva Pharmaceutical Industries Ltd (TEVA.TA) up 2.6% and Endo International Plc (ENDP.O), which was 1.4% higher.

Oklahoma's case was the first to go to trial out of more than 2,000 brought by municipalities seeking to hold drugmakers responsible for opioid abuse nationwide.
...
J&J said it will ask that the award be put on hold during an appeal process that could stretch into 2021
...
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Old 08-27-2019, 12:19 AM
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Interesting that it was considered low. Oklahoma isn't a huge state, so if this were to be the precedent for a national settlement, that might be 50 x $572 = $25-30B for just J&J. Not sure how much it would be for others, but you could see how this lays the groundwork for $100B or something like that for the industry. Would that be comparable to the tobacco industry's total settlement costs?
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Old 08-27-2019, 10:38 AM
nonactuarialactuary nonactuarialactuary is offline
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Quote:
Originally Posted by Westley View Post
Interesting that it was considered low. Oklahoma isn't a huge state, so if this were to be the precedent for a national settlement, that might be 50 x $572 = $25-30B for just J&J. Not sure how much it would be for others, but you could see how this lays the groundwork for $100B or something like that for the industry. Would that be comparable to the tobacco industry's total settlement costs?
Incidentally, $100B is the current industry ultimate estimated for asbestos claims.
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Old 08-27-2019, 10:44 AM
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It won't have as long a tail as asbestos, or at least, not as heavy a tail. People who become addicted to opiates usually do so within a decade of taking the drugs, not 30 years later, like the typical lag time between asbestos exposure and getting mesothelioma.
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Old 08-27-2019, 10:52 AM
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Also sounds like (going by reporting on radio, not article posted here) the settlement is more akin to tobacco than asbestos - whereas asbestos was mostly individual settlements when they got sick, tobacco was more like "We have a whole bunch of sick people that have a variety of problems, including addiction and cancer as well as a whole host of related issues (low birth weight, bp, aggravation of other illnesses, etc) - you can just cut one big check to the state". Or will individuals who died go after J&J - seems tough since they were mostly prescribed.
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Old 08-27-2019, 09:44 PM
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I’d be surprised if J&J pays a dime of this settlement in the next 5-10 years.
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Old 08-27-2019, 09:45 PM
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Go on...
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Old 08-27-2019, 09:46 PM
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It will be stuck in appeals court forever.
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Old 08-27-2019, 09:54 PM
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I'll take the under on 5 years. They expected to pay more so there's some pressure to go ahead and close it out. I wouldn't be surprised if there was no appeal, just claims of plans to appeal to get to the negotiating table. But I didn't read it so maybe they have actual grounds.
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Old 08-27-2019, 10:06 PM
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BTW my radio is discussing settlement of a Purdue oxytocin case rn. I think this follows the tobacco path - once the dominoes start to tumble, they just pay a huge sum and move on, rather than fighting.
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