The cases vary from one to the next. Some are families suing drug companies directly due to a loved one’s overdose, other opioid lawsuits are entire communities or states suing those who are considered at least partially responsible in the epidemic. Many lawsuits have a new outcome – opioid manufacturers are filing for bankruptcy as a result of high court fees and rulings stemming from state, class action, and federal opioid lawsuits.
The common thread in many of these lawsuits is the aggressive or deceptive marketing these opioid manufacturers utilized to peddle their products, often glazing over the dangers of their product. Now as the lawsuits continue, some companies are filing for bankruptcy as a result of the rulings and costs.
Insys Therapeutics is an opioid manufacturer filing for bankruptcy following its federal opioid lawsuit. After agreeing to pay $225 million as a result of criminal and civil cases against the drug company, Insys Therapeutics filed for Chapter 11 bankruptcy protection in early June.1 The bankruptcy protection may help the company escape the financial burden of the total amount they owe, but they will still be on the hook for the $28 million resulting from criminal settlement.
Opioid lawsuits are on the rise, with the notable Sackler Family lawsuit. The lawsuits are aimed at holding the parties responsible for components of the opioid epidemic accountable for their contributions to the growing problem. Some lawsuits are seeking punitive damages, meaning the opioid manufacturers in question will need to pay those harmed by the company’s actions should the suits rule in such a manner. Larger companies, meanwhile, may avoid bankruptcy due to the resources they have to absorb the expenses of these costly verdicts.
Purdue Pharma, producers of Oxycontin, is facing around 2,000 lawsuits. The company may also be considering a bankruptcy filing as a result of the numerous lawsuits it is facing in state and federal courts. 2
While the opioid lawsuits aim to hold manufacturers accountable for their contribution to the opioid epidemic, there is still work that needs to be done when it comes to helping addicts find sobriety. We offer opioid addiction treatment in Illinois, helping people find their sobriety from these dangerous drugs.