Teva Reaches Tentative $4.25 Billion Settlement Over Opioids

Teva Pharmaceuticals, one of the country’s largest manufacturers of generic opioids, has announced a reconciliation with approximately 2,500 local governments, states and tribes regarding its role in the deadly and ongoing opioid epidemic.

The deal, worth up to $ 4.25 billion, came after a series of fierce trials nationwide over the past year and previous settlements in individual cases.

Lesser known, the Israeli company Teva and its affiliates produced far more prescription opioids at the peak of the crisis than marquee-named opioid makers such as Johnson & Johnson. The production of both generic and branded analgesics has reduced production of Purdue Pharma, the manufacturer of oxycontin, the drug most directly associated with causing overdose and death avalanches.

Under this agreement, Teva paid for 13 years and was directed to state, local and tribal programs to mitigate the opioid crisis that was exacerbated only during the coronavirus pandemic. The total of $ 4.25 billion includes the approximately $ 550 million settlement already made by the company when the trials began in San Francisco and Florida. West VirginiaTexas, Louisiana, Rhode Island.

States and communities can choose to accept part of their payments with overdose reversals rather than cash.

The deal was negotiated by approximately 12 representatives of the Attorney General. “Today’s announcement reiterates that the person responsible for this tragic issue will be held accountable and support will be provided to those affected by the opioid epidemic,” said Iowa, who was involved in the negotiations. Said Attorney General Tom Miller. statement.

In a statement, Teva said, “The agreement does not include toleration of cheating, but it is our best to put these cases behind us and keep our focus on the patients we serve every day. It is in the interests of. “

People close to the talks said lawyers who had filed proceedings against the company since 2013 would be allocated about 10 to 12 percent of their money.

In 2016, Teva acquired Actavis, Allergan’s generics division. Allergan must also reach a settlement with these plaintiffs in order for Teva to close the deal. A lawyer familiar with the negotiations said he expected the announcement to come soon.

The deal is also subject to the overwhelming majority of state, local and tribal governments voting in favor.

An executive committee lawyer negotiating for the local government urged everyone to support the hard-earned deal. They said in a statement.

The result is likely, but one state that participated in the dozen who negotiated the terms has not yet signed. New York and Nassau and Suffolk counties that beat Teva in a civil jury trial. December last year.. A spokeswoman for the Attorney General of New York’s office said New York was still in talks with the company behind the second phase of the trial to determine financial bailouts.

Withdrawing an acceptable offer from Teva was a particularly protracted battle for the states, tribes and local governments that filed the proceedings against it. Purdue Pharma, for example, is often associated with increased marketing and misleading potential for branded medicines to doctors, but generic drug manufacturers have not officially called on them to sell. Teva claimed that he did not sell opioids to doctors.

One of Teva’s first settlement proposals in 2019 consisted almost entirely of medicines and a small amount of cash. Johnson & Johnson and the three drug dealers who participated in its early offer signed a deal two years later, but Teva continued the proceedings.

but, December 2020, Senate Finance Committee He published findings that were particularly critical of Teva, among other manufacturers, and urged lawmakers and others to pay millions of dollars to lobbying tax-exempt groups to increase patient access to painkillers. Plaintiffs said in a trial that Teva, which dominated the generic market by buying small businesses, ignored warning signs such as oversized pill orders.