Opioid manufacturer Purdue Pharma (Canada) (Purdue Canada) has agreed to a first-of-its-kind settlement in Canada resulting from British Columbia’s efforts to recover healthcare costs related to the sale and marketing of opioid painkillers.
The settlement was reached in the context of a proposed class action submitted by British Columbia on behalf of all Canadian governments.
“British Columbia’s efforts to negotiate this unique settlement, in collaboration with other Canadian governments, paves the way for further settlements in the ongoing litigation against other manufacturers and distributors of opioid products,” said David Eby, Attorney General. “We know that no amount of money can bring back those who have died, but we are committed to holding companies and others accountable for alleged wrongdoing in the manufacture and distribution of opioid products.”
In 2018, British Columbia filed a class action lawsuit on behalf of all federal, provincial and territorial governments in Canada and enacted the Opioid Damage Recovery and Health Care Costs Recovery Act. The purpose of the class action and legislation is to recover health care costs resulting from the wrongful conduct of opioid manufacturers, distributors and their consultants.
BC alleges that opioid manufacturers, distributors and their consultants have engaged in deceptive marketing practices in an attempt to increase sales, which has led to increased rates of addiction and overdose. Purdue Canada is one of more than 40 manufacturers and distributors named in the class action lawsuit filed in 2018 with a certification hearing scheduled for next year.
The proposed settlement with Purdue Canada has been accepted by all federal, provincial and territorial governments and totals $150 million in monetary benefits, as well as additional benefits including access to information and documents relevant to the lawsuit. This settlement was reached very early in the litigation process, before the allegations against Purdue Canada had been proven in court. This is the largest settlement of a government health claim in Canadian history. The proposed deal is still subject to final court approval, expected in the coming months.
In addition to the Purdue Canada settlement, BC’s application to certify its class action lawsuit in the BC Supreme Court is scheduled for fall 2023. This could open the door for further settlements to recover health care costs.
“British Columbia is using every tool in the toolbox to deal with the ongoing public health emergency,” said Sheila Malcolmson, Minister of Mental Health and Addictions. “We are standing up to multinational pharma, advancing decriminalization, investing in new treatment and recovery services, expanding harm reduction measures like safe prescribed supply, and building a seamless, comprehensive continuum of mental health care and addiction treatment that British Columbians need. and deserve.
Together, the provinces, territories and the Canadian government will continue to vigorously pursue the prosecution of the remaining defendants until they have all been held accountable.
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