June 7 (Reuters) - A court-appointed panel on Friday
recommended how to divvy up a pool of $2.13 billion in legal
fees from nationwide drug industry settlements over the U.S.
opioid crisis, with top firms set to receive hundreds of
millions of dollars.
The panel gave national firm Motley Rice the largest share,
with 18.6% of the funds, or $396 million. Other firms with large
shares include New York-based Simmons Hanly Conroy, with 11.4%,
or $244 million; California-based Robbins Geller Rudman & Dowd,
with 8.2%, or $174 million; and California-based Lieff Cabraser
Heimann & Bernstein, with 5.65%, or $120 million.
The $2.13 billion fee pool comes out of settlements totaling
more than $46 billion that drugmakers, distributors and
pharmacies have reached to resolve lawsuit by local and Native
American tribal governments accusing them of fueling an epidemic
of opioid addiction.
The money was set aside as a so-called common benefit fund,
to compensate law firms for work they did that benefited all of
the plaintiffs in the litigation.
U.S. District Judge Dan Polster, who has overseen the
sprawling opioid litigation since 2017, also ruled Friday that
firms have until June 21 to appeal the panel's recommendations
before they become final.
The fees stem from settlements with drugmakers Johnson &
Johnson ( JNJ ), AbbVie ( ABBV ) and Teva Pharmaceutical
Industries; distributors Cencora ( COR ), McKesson
and Cardinal Health ( CAH ); and pharmacies CVS,
Walgreens Boots Alliance ( WBA ) and Walmart ( WMT ).
They do not include a settlement of up to $6 billion with
bankrupt OxyContin maker Purdue Pharma, which is funded by that
company's Sackler family owners in exchange for a shield from
future lawsuits. The U.S. Supreme Court is currently weighing
whether that settlement is legal.
Opioid settlements, including both the nationwide deals and
separate agreements negotiated by individual states, now total
well over $50 billion. However, many state and local governments
have yet to develop detailed plans for how they will spend the
money to remedy the harms caused by opioids.
More than 800,000 people died of opioid overdoses from 1999
through 2023, according to data from the U.S. Centers for
Disease Control and Prevention. Plaintiffs in the lawsuits say
that drugmakers downplayed the drugs' risks, and distributors
and pharmacies ignored red flags that they were being diverted
into illegal channels.