Facing Economic Chaos: Endo’s Bankruptcy Settlement Commitment
$465 Million Bankruptcy Settlement: An Agreement of Drugmaker Endo with US. (PHOTO: The Wall Street Journal)
Holding Endo Accountable Throughout Bankruptcy: The DOJ’s Vigilance
In a significant development, pharmaceutical company Endo, grappling with an $8 billion debt and numerous lawsuits tied to its alleged role in the U.S. opioid epidemic, filed for bankruptcy in August 2022. As part of its bankruptcy restructuring strategy, Endo has committed to pay approximately $600 million in settlements to address claims from states and individuals affected by the opioid crisis, alongside a commitment to cease the promotion of opioids to prescribers.
U.S. Attorney Damian Williams of the Southern District of New York emphasized that bankruptcy should not serve as a means to evade responsibility for criminal misconduct, civil fraud, or taxes. The Department of Justice (DOJ) settlement holds Endo accountable for past misconduct, preserving previous agreements to support opioid addiction treatment programs and compensate individuals harmed by the epidemic.
Under the settlement terms, Endo will pay the government $364.9 million over 10 years, with a contingent payment of up to $100 million based on the company’s post-bankruptcy business performance. Additionally, Endo has the option for a lower, one-time payment of $200 million upon exiting bankruptcy.
This resolution, highlighted in a November court filing, addresses over $7 billion in claims asserted by the DOJ, covering purported tax debts, a criminal investigation into opioid marketing practices, and potential overpayment by the federal government for Endo medications.
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Accountability for Corporate Action: EHSI’s Response in the Opana ER Marketing Case
Endo subsidiary Endo Health Solutions Inc (EHSI) will plead guilty to a misdemeanor related to the past marketing of the opioid drug Opana ER. EHSI, which ceased selling Opana ER in 2017, acknowledges violating the Federal Food, Drug, and Cosmetic Act by selling misbranded drugs.
The opioid crisis has had devastating consequences, with nearly 645,000 people succumbing to opioid overdoses between 1999 and 2021. Despite ongoing efforts, preliminary data from the U.S. Centers for Disease Control and Prevention indicates that overdose deaths remained high in 2022 and 2023.
The legal landscape surrounding the opioid crisis involves thousands of lawsuits filed by states, local governments, hospitals, and individuals against companies allegedly contributing to the epidemic. The collective settlements from drugmakers, distributors, and pharmacy chains have surpassed $50 billion, reflecting the multifaceted efforts to address the complex challenges posed by the opioid crisis.
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