Baltimore Jury Orders $266M Payment from McKesson and Cencora
A Baltimore jury has ordered pharmaceutical giants McKesson and Cencora to pay $266 million in damages. The companies were found liable for their role in fueling the opioid crisis, which continues to devastate communities nationwide.
McKesson, headquartered in Texas, must pay $192 million. Pennsylvania-based Cencora faces a $74 million penalty. Baltimore accused both companies of failing to report suspicious opioid orders, including oxycodone and hydrocodone, which fueled the city’s opioid epidemic.
Baltimore plans to seek an additional $9 billion next month to fund addiction treatment, recovery services, and public health initiatives.
Mayor Praises Verdict as Accountability for Big Pharma
Baltimore Mayor Brandon Scott called the verdict a victory for accountability. He praised the jury for recognizing how pharmaceutical companies’ actions directly impacted Baltimore. “This crisis has touched every family and neighborhood,” Scott said. “Today’s decision is a crucial step toward healing.”
The opioid epidemic remains a major public health crisis, with nearly 81,000 opioid-related deaths reported in 2023, according to the CDC. From 2017 to 2021, Baltimore recorded an average of 866 opioid-related deaths annually.
Landmark Ruling Against McKesson and Cencora
This case marks the first time McKesson and Cencora have been found liable in opioid-related litigation. The lawsuit, filed nearly seven years ago, accused multiple pharmaceutical companies of failing to prevent illegal opioid distribution.
Bill Carmody, Baltimore’s lead attorney, celebrated the verdict as a “significant milestone” in fighting the opioid crisis. “Baltimore has been hit harder than any other U.S. city,” Carmody said. “This decision will help the city recover and protect future generations.”
Baltimore’s decision to opt out of a national settlement allowed the city to pursue its own case. So far, the city has secured over $400 million in settlements from companies like CVS, Walgreens, Johnson & Johnson, and Teva.
Failure to Report Suspicious Orders
Court filings revealed that McKesson and Cencora (formerly AmerisourceBergen) failed to report suspicious opioid orders. Under federal law, distributors must alert authorities to unusually large or frequent orders of controlled substances.
In 2017, McKesson admitted to similar violations, paying a $150 million settlement to the U.S. Department of Justice. Baltimore’s lawsuit claimed that McKesson’s practices continued to contribute to the opioid crisis.
Cencora also faces a lawsuit from the U.S. Department of Justice, which accuses it of failing to report suspicious orders. The lawsuit, filed in December 2022, alleges Cencora’s actions enabled the illegal diversion of prescription opioids.
Companies Plan to Appeal
McKesson and Cencora both plan to appeal the verdict. Cencora’s spokesperson said the ruling misrepresents the facts, adding that the company is reviewing its legal options. McKesson’s spokesperson stated, “We respect the jury’s verdict, but we strongly disagree with it.” The company plans to challenge the decision and is prepared to appeal.
Funding the Fight Against Opioid Addiction
With the $266 million settlement, Baltimore’s restitution from opioid-related litigation now totals $668.5 million. Mayor Scott called the funds “game-changing,” saying they will support opioid prevention, treatment, and recovery programs.
Baltimore’s overdose death rate remains among the highest in Maryland. The city represents just 9% of the state’s population but accounts for 44% of overdose deaths. On average, Baltimore experiences more than two overdose deaths daily. Prescription opioids were the starting point for 80% of opioid use disorder cases in Baltimore from 2010 to 2021.
Nationwide, 125 million opioid prescriptions were dispensed in 2023, according to the CDC. About 8.6 million Americans, including adolescents, misused prescription opioids, driving the crisis’s continued escalation.