Nov 13 (Reuters) - The city of Baltimore won $266
million in its lawsuit accusing top drug distributors McKesson
and Cencora ( COR ) of fueling an epidemic of opioid
addiction in the U.S., and is expected to seek billions more in
the next phase of the case.
A six-person jury in the Circuit Court for Baltimore found
McKesson responsible for $192 million and Cencora ( COR ) for $74
million on Tuesday following a nearly two-month trial. The
amount represents damages compensating the city for harms the
companies were found to have caused.
Baltimore, which has been hit hard by the opioid crisis,
opted out of large national opioid settlements in recent years
in the hope of winning more money on its own. In 2022, Baltimore
recorded 904 opioid overdose deaths, out of a total population
of about 569,000, while the national opioid overdose death rate
was about 25 per 100,000.
Next month, the city is expected to ask Judge Lawrence
Fletcher-Hill for about $9 billion from the companies to pay for
the cost of addressing the opioid crisis going forward. That is
a legal remedy known as abatement, and is distinct from civil
damages.
Baltimore accuses Cencora ( COR ), formerly called
AmerisourceBergen, and McKesson of ignoring red flags that
opioids they supplied were being diverted into illegal channels.
The companies deny the claim.
"Justice was done," said Bill Carmody, a lawyer for
Baltimore. "The jury's verdict is an important step toward
helping Baltimore recover so that it can continue to be one of
the best cities in America and a place where all of its citizens
can be healthy and succeed."
Both companies said they would seek to have the verdict
overturned. McKesson in a statement said that the verdict
"fundamentally misunderstands McKesson's limited role as a
pharmaceutical distributor."
Cencora ( COR ) said it "frays the legal and ethical tightrope the
company is being asked to walk between providing access to
necessary medications and acting to prevent diversion of
controlled substances."
Baltimore is one of more than 3,000 local, Native American
tribal and state governments across the country that have filed
similar lawsuits against drugmakers, distributors and pharmacies
over the opioid crisis. The vast majority of those cases have
been settled through nationwide agreements, which now total
about $46 billion.
With Tuesday's verdict, which comes after a series of
settlements with other companies including Walgreens and
Johnson & Johnson ( JNJ ), Baltimore has now obtained more than
$668 million in verdicts and settlements.
McKesson supplied about half of Baltimore's opioids between
2006 and 2019, according to U.S. government data. In 2017, it
reached a $150 million settlement with the U.S. Department of
Justice, under which it admitted that it had failed in its duty
to prevent illegal drug sales nationwide.
Cencora ( COR ) is also currently facing a civil lawsuit by the
Justice Department over its alleged role in the opioid crisis.
More than 800,000 people in the United States died of opioid
overdoses from 1999 through 2023, according to data from the
U.S. Centers for Disease Control and Prevention.