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Ohio Supreme Court supports pharmacies in challenging $650 million opioid ruling

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COLUMBUS, Ohio — On Tuesday, the Ohio Supreme Court determined that the state’s product liability regulations do not permit counties to file public nuisance lawsuits against large pharmaceutical companies, as was executed in the national opioid crisis litigation. This ruling may potentially reverse a significant $650 million judgment previously levied against prominent pharmacy chains.

The decision has been described as “devastating” by an attorney representing the counties involved in the lawsuit. The justices reached a mostly unanimous conclusion on a complex legal matter that stemmed from a case initiated by Lake and Trumbull counties, which are located near Cleveland, targeting CVS, Walgreens, and Walmart.

Initially, the counties had succeeded in their legal battle and received $650 million in damages from a federal judge in 2022. Nonetheless, the pharmacy chains contended that the Ohio Product Liability Act shields them from such legal measures.

Justice Joseph Deters, who authored the court’s opinion, articulated that the law was designed to prohibit “all common law product liability causes of action.” This includes not only claims aimed at seeking compensatory damages but also those that demand “equitable relief” for the affected communities.

“The straightforward language of the OPLA nullifies product liability claims, including public nuisance claims connected to product liability that seek equitable relief,” Deters noted. He emphasized the necessity of adhering to the statute’s text rather than legislating based on personal viewpoints.

While the majority of the court sided with this interpretation, two Democratic justices expressed a differing opinion regarding a specific aspect of the judgment, while still agreeing with the overall decision. Justice Melody Stewart highlighted that any award intended to eliminate a public nuisance, such as the opioid crisis, would undoubtedly be significant, given the long-lasting and widespread nature of this issue. However, she clarified that the magnitude of such an award does not necessarily convert it into compensatory damages.

Peter Weinberger, a co-liaison counsel for the plaintiffs involved in the national opioid litigation from a Cleveland law firm, expressed regret over the ruling. He argued that this decision will have a grave impact on communities’ ability to hold corporations accountable for their wrongdoing. “Our efforts have successfully yielded nearly $60 billion in settlements related to the opioid crisis nationwide, including close to $1 billion in Ohio. The Ohio Supreme Court’s ruling undercuts the legal framework that enabled these achievements,” he stated.

Despite the unfavorable ruling, Weinberger conveyed that the fight would persist through alternative legal methods. “We remain dedicated to ensuring accountability for all parties implicated as litigation carries on across the country,” he added.

In the previous federal ruling by U.S. District Judge Dan Polster in 2022, he indicated that the compensation awarded to Lake and Trumbull counties was to be allocated for initiatives aimed at combating the opioid crisis. The cumulative damages were estimated at $3.3 billion. Lake County was set to receive $306 million over a 15-year period, while Trumbull County was expected to get $344 million during the same timeframe, with about $87 million available right away for the first two years.

In November 2021, a jury found in favor of the counties following a six-week trial. The judge later evaluated the evidence in May 2022 to determine the compensation amount. The counties successfully argued that the pharmacies had significantly contributed to the public nuisance concerning their distribution of pain medications. This case marked the first instance where pharmacy companies participated in a trial related to the devastating drug epidemic, which has claimed over half a million lives in the U.S. since 1999.