A Baltimore jury has ordered two major pharmaceutical companies, McKesson and Cencora, to pay a total of $266 million in damages after finding them liable for their role in fueling the opioid epidemic, which continues to devastate communities across the United States.
McKesson, based in Texas, was held accountable for $192 million, while Cencora, a Pennsylvania-based drug distributor, was ordered to pay $74 million. The city of Baltimore accused the companies of failing to report suspicious opioid orders, including oxycodone and hydrocodone, which contributed to the city’s ongoing opioid crisis.
In addition to this ruling, Baltimore intends to ask the court for an additional $9 billion next month to help fund solutions for the opioid epidemic, including addiction treatment, recovery services, and other public health measures.
Mayor Applauds the Verdict
Baltimore Mayor Brandon Scott praised the jury’s decision, calling it an important step toward holding pharmaceutical companies accountable for the devastation caused by the opioid crisis. “The jury recognized that the impact on Baltimore was a direct result of the actions of big pharma,” Scott said. “This epidemic has touched every neighborhood, every family, and every resident of our city, and today we are taking a crucial step toward healing.”
The opioid crisis continues to take a heavy toll across the country, with nearly 81,000 Americans dying from opioid overdoses in 2023, according to the Centers for Disease Control and Prevention (CDC). In Baltimore alone, the city has seen an average of 866 opioid-related deaths each year between 2017 and 2021.
Historic Legal Victory for Baltimore
This ruling marks the first time McKesson and Cencora have been held liable in opioid-related litigation. It comes nearly seven years after Baltimore filed its lawsuit against multiple pharmaceutical companies, accusing them of failing to take necessary actions to stop the illegal distribution of opioids.
Bill Carmody, lead attorney for Baltimore, celebrated the jury’s decision as a significant milestone in the fight against the opioid crisis. “Baltimore has been hit harder than any other city in America by the opioid epidemic,” said Carmody. “This verdict is an important step in helping the city recover and ensure that future generations will not suffer the same devastation.”
Baltimore opted out of a national settlement with pharmaceutical companies to pursue its own litigation, seeking larger financial compensation. Since then, the city has secured over $400 million in settlements with other companies, including CVS, Walgreens, Johnson & Johnson, and Teva.
Failure to Report Suspicious Orders
Court documents revealed that McKesson and Cencora (formerly known as AmerisourceBergen) were accused of failing to report suspicious opioid orders as required under federal law. This failure allegedly allowed opioids to flood communities in Baltimore and across the U.S.
In 2017, McKesson admitted to similar violations in a settlement with the U.S. Department of Justice, agreeing to pay $150 million for failing to report suspicious drug orders. The lawsuit filed by Baltimore highlighted that McKesson’s actions continued to contribute to the opioid crisis.
Cencora also faces a lawsuit from the U.S. Department of Justice, filed in December 2022, which accuses the company of failing to report hundreds of thousands of suspicious opioid orders to federal authorities. The government claims that Cencora was aware that its actions were facilitating the illegal diversion of prescription opioids.
Appeal Expected
Both McKesson and Cencora have indicated that they plan to appeal the jury’s verdict. Cencora’s spokesperson expressed disappointment with the ruling, saying that it does not accurately reflect the facts of the case. The company is reviewing its options, including appealing the decision.
A McKesson spokesperson said, “While we respect the jury’s verdict, we strongly disagree with it and believe it fundamentally misunderstands our role as a pharmaceutical distributor.” McKesson plans to file motions challenging the verdict and is prepared to appeal if necessary.
Funds to Address the Opioid Crisis
With the $266 million award, Baltimore’s total restitution from opioid litigation now exceeds $668.5 million. Mayor Scott called the settlement a “game-changing” amount that will help fund programs aimed at addressing the city’s opioid crisis, including prevention, treatment, and recovery efforts.
Baltimore, which comprises just 9% of Maryland’s population, accounts for nearly 44% of the state’s overdose deaths, according to the Baltimore City Health Department. The city has an average of more than two overdose deaths per day, and approximately 80% of opioid use disorder cases between 2010 and 2021 in Baltimore began with prescription opioids.
Nationwide, the CDC reported that 125 million opioid prescriptions were dispensed in 2023, with nearly 8.6 million Americans, including adolescents, misusing prescription opioids. The continued misuse of prescription opioids is a significant factor contributing to the opioid crisis and the rising number of deaths related to opioid overdoses.
