A major opioid manufacturer and pharmaceutical company has agreed to a landmark settlement in Canada. $150 million was paid out by Purdue Canada thanks to a B.C. led initiative to recover healthcare costs related to the ongoing opioid crisis and marketing of opioid-based pain medications.
The settlement comes from a proposed class-action lawsuit, brought forward in 2018 by B.C. on behalf of all federal, provincial, and territorial governments in Canada. The Opioid Damages and Health Care Costs Recovery Act was enacted in the same year, with the goal of recovering healthcare costs that resulted from the wrongful conduct of opioid manufacturers and distributors.
“B.C.’s efforts to negotiate this unique settlement, together with other Canadian governments, paves the way for additional settlements to be reached in the ongoing litigation against other manufacturers and distributors of opioid products,” said David Eby, B.C.’s attorney general and housing minister.
“We know that no amount of money can bring back those who have died, but we are committed to holding corporations and others accountable for acts of alleged wrongdoing committed in the manufacturing and distribution of opioid products.”
On April 14, 2016, B.C. declared a public health emergency due to an alarming amount of overdose deaths in the province. This declaration is still in effect today, with nearly 10,000 British Columbians losing their lives to overdose. The provincial government alleges that opioid manufacturers and distributors engage in deceptive marketing strategies aimed at increasing sales, leading to higher rates of addiction and overdose across the country.
The settlement, reached early in the litigation process, totals $150 million in monetary benefits, plus additional benefits including access to information, such as documents relevant to the lawsuit. Purdue Canada agreed to the settlement before their wrongdoing had even been proven in court. While still subject to approval in the court system, this is the largest settlement of a governmental health claim in Canadian history.
“We are standing up to multinational pharmaceutical companies, advancing decriminalization, investing in new treatment and recovery services, expanding harm-reduction measures like prescribed safe supply, and building a comprehensive and seamless continuum of mental health and addictions care that British Columbians need and deserve,” said Minister of Mental Health and Addictions Sheila Malcolmson.
“B.C. is using all the tools in the toolbox to tackle the ongoing public health emergency.”
The litigation doesn’t stop here, with Purdue Canada being just one of over 40 manufacturers and distributors named in the class action. B.C. says it has applied to have the class action certified in the Supreme Court, opening up the door for further settlements.
A hearing is scheduled for fall 2023.
