Teva Pharmaceuticals Reaches $80 Million Settlement with Baltimore Over Opioid Crisis

Teva Settles Baltimore Opioid Case for $80 Million

Teva Pharmaceuticals has reached an $80 million settlement with Baltimore in response to allegations that the company played a substantial role in perpetuating the city’s opioid epidemic. The lawsuit, part of a broader effort by Baltimore to hold opioid manufacturers and distributors accountable, culminated in this significant payout, which Baltimore Mayor Brandon M. Scott described as a victory for the city’s ongoing fight against opioid addiction. This settlement follows Baltimore’s decision to reject a national settlement with Teva, ultimately securing a more favorable outcome. The funds will be directed toward essential recovery programs, education initiatives, and outreach efforts to address the lasting impact of opioid misuse in the city.

5 Key Points

• Teva Pharmaceuticals has agreed to pay $80 million to settle claims regarding its involvement in Baltimore’s opioid crisis.
• Baltimore rejected the national settlement with Teva, opting for a local deal, resulting in a payout more than seven times larger than the national proposal.
• The settlement will support opioid-related recovery initiatives, including $5 million for public education about the 988 mental health hotline and $3 million for the Penn North Recovery Center.
• This settlement is the fourth in a series of agreements related to Baltimore’s opioid litigation, bringing the city’s total recoveries to over $322 million.
• The legal battle against other opioid defendants continues, with the next trial scheduled to begin later this month.

Context of the Settlement

The opioid epidemic has devastated communities across the United States, and Baltimore has been one of the cities hit hardest. Teva Pharmaceuticals, one of the world’s largest generic drug manufacturers, was implicated in Baltimore’s opioid litigation due to its alleged role in distributing addictive opioids. This settlement marks the fourth major victory for the city, which had previously secured agreements with other pharmaceutical giants, including Allergan, CVS, and Cardinal Health. The combined settlements now exceed $322.5 million, which will be used to bolster Baltimore’s opioid crisis response efforts.

Allocation of the Settlement Funds

Mayor Brandon M. Scott outlined a detailed plan for allocating the funds from the Teva settlement. A portion will be devoted to enhancing public education about the 988 mental health hotline, a critical service for individuals in crisis. In addition, $3 million will be allocated to the Penn North Recovery Center, which has been instrumental in providing addiction recovery services to the community. Another $2 million will go to BMore Power, a grassroots organization focused on outreach and harm reduction. The remaining funds will be distributed through a comprehensive framework established by Mayor Scott’s executive order, ensuring that resources are used effectively to combat the opioid epidemic on multiple fronts.

Future of Opioid Litigation in Baltimore

Despite the success of this settlement, the city’s legal battle against other opioid manufacturers and distributors continues. The defendants who controlled over half the opioid market in Baltimore have yet to settle, and the city’s subsequent trial is slated to begin soon. Mayor Scott emphasized that while these settlements cannot undo the damage caused by the opioid crisis, they represent a crucial step toward healing and recovery for the community. The funds will allow Baltimore to take a multifaceted approach to addressing the epidemic, from public health initiatives to direct support for those affected by addiction.