(Vancouver) The British Columbia government announced on Wednesday that a $150 million settlement has been reached with Purdue Pharma Canada, covering all provinces, to recover health care costs related to the sale and the marketing of opioid painkillers.
Posted at 6:22 p.m.
The province’s Attorney General, David Eby, argued Wednesday that it was the largest settlement of a government health care claim in Canadian history.
The British Columbia government filed a class action lawsuit against more than 40 pharmaceutical companies in 2018, on behalf of federal, provincial and territorial governments in Canada. The class action sought to recover health care costs for the “wrongful conduct of opioid manufacturers, distributors and their consultants” regarding opioid painkillers.
According to Minister Eby, the proposed settlement has been accepted by all governments in Canada.
He said a plan is being developed to determine how the money will be divided, based on the impact of opioids in each province.
“The money will be used to support provincial programs to address the opioid epidemic that we believe Purdue’s actions have contributed to through their misleading marketing,” he said.
More than 27,000 people died across the country from toxic drugs between 2016 and September 2021.
“We took this action to recover healthcare costs and to hold opioid companies accountable for their role in the alleged use of deceptive marketing tactics to increase sales, resulting in rising addiction rates. and overdoses,” Mr. Eby said at a press conference.
The Attorney General adds that his government is “committed to aggressively pursuing prosecutions against other manufacturers and distributors who put profits before people.”
The Attorney General thus recalled that many manufacturers, distributors and consultants are still being sued in the class action. “And they are warned by this settlement that we will pursue them relentlessly. »
Billions swallowed up
David Eby says health care costs related to the opioid crisis are “probably in the billions of dollars.”
“In the United States, the claims are in the trillions and have caused the bankruptcy of the American branch of Purdue,” he recalled.
He explained that Canada risked becoming part of a group of unsecured creditors within the US bankruptcy process, where the total amount available is only US 15 million for the whole group.
The class action initiated by British Columbia had the effect of preventing Purdue from liquidating its assets in Canada in order to pay its creditors in the United States, which would have left Canadians with nothing after the American bankruptcy.
“So, in this aspect, this is a remarkable achievement for British Columbia and for all the provinces of Canada,” said the Attorney General.
In the United States, more than 3,000 lawsuits have been filed by governments, unions, hospitals and other entities in an effort to hold manufacturers, pharmacies and distributors accountable.
The American companies involved, mainly those that produced or sold the drugs, have already had to pay more than 47 billion in settlements, damages or penalties imposed in civil or criminal court.
The hearing of the government’s motion to certify the class action, in the Supreme Court of British Columbia, is scheduled for fall 2023. The provincial government has said the proposed settlement with Purdue could by open the door to new amicable settlements.