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29 Texas Hospitals Sue Drugmakers for Opioid Crisis

Analysis  |  By Jack O'Brien  
   September 04, 2019

The move comes more than a week after the state of Oklahoma won its landmark lawsuit against Johnson & Johnson for its role in the opioid crisis.

Nearly 30 Texas hospitals announced a civil lawsuit Wednesday against Purdue Pharma, Johnson & Johnson, and more than 40 other companies and individuals associated with manufacturing and distributing opioids.

Led by Parkland Health & Hospital System, the group of hospitals allege "negligence, fraud and civil conspiracy" by the drug manufacturers relating to the ongoing opioid crisis.

Specifically, the plaintiffs assert that the defendants took "unlawful actions" over several decades to assure the public about the addiction risks associated with opioids and utilized "deceptive marketing tactics" on physicians in order to expand prescribing patterns.

The Texas hospitals also claim that they have been on the costly end of the opioid crisis, with one lawyer describing the "financial and operational damage" to Lone Star providers as "acute." The lawsuit states that hospitals treated those afflicted with opioid addiction but did not recoup most of the costs of care due to a lack of reimbursement from health insurers.

"Texas hospitals are on the front lines of an epidemic that creates an enormous financial burden,” Darren Nicholson, one of the lead attorneys for the plaintiffs, said in a statement. "Because they are the key dealing with this public health crisis, they should also receive any funds resulting from litigation and settlements by these defendants. Texas hospitals will be dealing with this epidemic for decades."

The legal action comes more than a week after Oklahoma won its landmark lawsuit against Johnson & Johnson for its role in the opioid crisis, with the judge ordering the company to pay $572 million.

The Texas hospital case is the latest attempt to hold drugmakers and executives accountable for the opioid crisis, which has affected millions across the country for more than a decade.

In March, New York state sued the Sackler family, which owns Purdue Pharma, for its role in fueling the opioid crisis. Purdue Pharma created and distributed OxyContin, and is reportedly offering between $10 billion to $12 billion to settle more than 2,000 lawsuits against the company.

Watch Richard Sackler Deny his Family's Role in the Opioid Crisis

Related: Purdue Pharma Offers $10-12 Billion to Settle Opioid Claims

In early August, Arizona filed a lawsuit in the U.S. Supreme Court asking the justices to order the Sacklers to return money the state alleged was stolen from Purdue Pharma.

Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.


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