SALISBURY – The Wicomico County Council voted this week to join a multi-billion-dollar settlement against four national drug companies.
On Tuesday, the council voted unanimously to opt into a $26 billion settlement with drug distributors McKesson Corp., Cardinal Health Inc. and AmerisourceBergen Corp. and drug manufacturer Johnson & Johnson for their alleged roles in the country’s opioid epidemic.
Specifically, the settlement will resolve allegations that the three distributors failed for years to monitor and report suspicious orders of opioid products, which resulted in diversion of those drugs on a massive scale, as well as claims that Johnson & Johnson deceptively marketed its fentanyl products to healthcare providers and patients.
“A number of years ago, Wicomico County filed suit in United States District Court for the District of Maryland against the aforementioned defendants in an opioid-related lawsuit …,” said Andrew Illuminati, attorney for the county’s law firm. “At the same time Wicomico County filed its lawsuit, a number of political subdivisions across the United States filed similar lawsuits against the same defendants, resulting in what’s called multi-district litigation with all the lawsuits being consolidated.”
Since that time, Maryland Attorney General Brian Frosh has announced the state’s participation in the settlement, joining 41 other states, five territories and the District of Columbia. He noted in a September news release that McKesson, AmeriSourceBergen, and Cardinal Health could pay Maryland and its subdivisions up to $411.17 million, while Johnson & Johnson could pay up to $91.6 million.
Illuminati told council members this week Frosh’s announcement essentially meant the state’s subdivisions, including Wicomico County, have until Jan. 2, 2022 to decide whether to join the settlement. While the attorney general has proposed a framework that distributes 30% of settlement proceeds to the state and 70% to local government entities, the Maryland Association of Counties (MACo) has proposed an alternative framework to alleviate some of the requirements in accessing settlement funds.
“Waiting to hear from the attorney general would be the best course of action,” he told council members. “However, with a Jan. 2 opt-in settlement decision … a decision has to be made.”
To that end, Illuminati noted that outside legal counsel had recommended that Wicomico County join the settlement, but with a recommendation that the attorney general adopt the MACo framework.
“Even if the attorney general doesn’t adopt the MACo framework, Wicomico County should still remain in for settlement purposes because we have an understanding of what Wicomico County will likely receive under the attorney general’s framework,” he added.
With no further discussion, the council voted 7-0 to approve a resolution announcing the county’s participation in the national settlement.
Under the settlement agreement, the distributors will also adopt extensive monitoring and reporting programs to address suspicious orders and diversion of opioids, and Johnson & Johnson will cease its sale of opioids. The extent to which Maryland receives its full share of the recovery will depend on the level of participation in the settlements by the state’s counties and municipalities.
“No amount of money could ever compensate for the devastation wrought by the opioid epidemic,” Frosh said in a statement. “But these settlements will bring much needed funds to address the harms Marylanders have suffered. The funds will provide addiction treatment, prevention, and other abatement programs across the State to help Marylanders recover.”
