Virginia announces $450M settlement as part of opioid maker Endo’s bankruptcy
Targeted News Service (Press Releases)
Virginia Attorney General Jason Miyares has reached an agreement in principle with opioid maker Endo International plc and its lenders that would provide up to $450 million to participating states and local governments, ban the promotion of Endo's opioids, and require Endo to turn over millions of documents related to its role in the opioid crisis for publication in a public online archive. The Commonwealth of Virginia is expected to receive at least $9 million.
The agreement in principle with Endo, which filed for Chapter 11 bankruptcy protection Tuesday night in the Southern District of New York, resolves allegations that Endo boosted opioid sales using deceptive marketing that downplayed the risk of addiction and overstated the benefits. Endo, an Ireland-based drugmaker with its U.S. headquarters in Malvern, Pennsylvania, makes generic and branded opioids including Percocet and Endocet and also made Opana ER, which was withdrawn from the market in 2017. The states allege that Endo falsely promoted the benefits of Opana ER's so-called abuse-deterrent formulation, which did nothing to deter oral abuse and led to deadly outbreaks of Hepatitis and HIV due to its widespread abuse via injection.
"Virginia has seen the brutal impact of the opioid epidemic in every corner of the Commonwealth. This nationwide agreement will allow for broad investment and remediation efforts for devastated communities. Although no price can be placed on the thousands of lives lost, this settlement represents a major step towards ensuring that victims receive the treatment and care they need," said Attorney General Miyares.
The resolution, which is contingent on final documentation and Bankruptcy Court approval, involves the following:
* Requires payment of $450 million in cash over 10 years to participating states and subdivisions.
* Requires Endo to turn over its opioid-related documents for publication online in a public document archive and pay $2.75 million for archival expenses.
* Bans the marketing of Endo's opioids forever.
The negotiations are being led by Virginia and the following states: Maine, Massachusetts, New Hampshire, Pennsylvania, Tennessee, and Vermont.. The settlement is also joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Rhode Island, South Carolina, South Dakota, Utah, Washington, Wisconsin, Wyoming, and the U.S. Virgin Islands.