June 24 (Reuters) -
U.S. law firm Motley Rice is appealing its award of $396
million for its work on litigation against the drug industry
over the opioid crisis that resulted in $46 billion in
nationwide settlements.
The firm said it would appeal the award, which represents
18.6% of a $2.13 billion pool of fees to be divided among dozens
of law firms, in a notice filed Friday in Cleveland federal
court. It did not say how much it was asking for or on what
basis it was challenging the award.
Motley Rice had already won a bump in fees after objecting
earlier in the allocation process, up from 17.2%, or $366
million, according to a June 7 court filing.
The firm did not immediately respond to a request for
comment.
Several other firms have secured awards in the hundreds of
millions of dollars and have not appealed them.
Other firms that filed notices of appeal are Spangenberg
Shibley & Liber; Kelley Ferraro; Crueger Dickinson; Stranch,
Jennings & Garvey; and Weisman, Kennedy & Berris. All of those
firms received less than 2% of the funds.
The fees stem from settlements that local and Native
American tribal governments have reached 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 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. Plaintiffs in
the lawsuits say that drugmakers downplayed the drugs' risks,
and that distributors and pharmacies ignored red flags that they
were being diverted into illegal channels, fueling an epidemic
of addiction.
Read more:
Top law firms in US opioid lawsuits to get hundreds of
millions in fees
US Supreme Court torn over Purdue Pharma bankruptcy
settlement