Three of the four defendants agreeing to pay $260 million to settle opioid litigation with two Ohio counties have seen their stock prices plummet, as the settlement leaves 2,700 more local governments still suing over the distributors' roles in the addiction crisis.
Why it matters: The deal could serve as a template that would put the companies on the hook for $47 billion in damages to all 2,700 counties serving as plaintiffs in the lawsuits, depending on what happens in individual representative "bellwether trials" that will shape negotiations.
The federal opioids litigation took a step closer to resolution yesterday when major drug companies settled with 2 Ohio counties just before a trial was scheduled to begin.
Yes, but: States, municipalities and the companies being sued are still hashing out a global resolution to the thousands of lawsuits pending across the country.
Why it matters: The announcement comes at a time when she's been criticized for dodging questions from her 2020 Democratic rivals on how she plans to pay for "Medicare for All."
Drug distributors McKesson Corp., Cardinal Health Inc., AmerisourceBergen Corp. and Teva Pharmaceutical Industries, an Israeli-based manufacturer of generic drugs, reached a $260 million settlement on Monday to avoid the first federal opioid trial that was set to begin in Cleveland, the Wall Street Journal reports.
Why it matters: People familiar with the discussions told the New York Times that a broader settlement to resolve thousands of cases brought by local governments and states could be announced later in the day.
The opioid epidemic has left thousands of West Virginian children neglected, abused or in foster care, the Washington Post reports.
Why it matters: "West Virginia's journey provides a case study in how legal battles against drug companies can fail to balance the scales, leaving behind more conflict than resolution in communities still reeling from the crisis," the Post writes.
Companies rarely switch the health plans they offer to their workers, and seem to be especially cautious in the 2020 election year.
The big picture: Medical and drug costs are crushing employers and workers alike. But altering benefits — which could require employees to change their doctors — could provoke even more anger.
Democratic presidential candidate Sen. Elizabeth Warren said at a town hall in Indianola, Iowa, Sunday she'll soon release cost details of her Medicare for All plan, per The Hill.
Why it matters: Warren's 2020 rivals including former Vice President Joe Biden have criticized her in recent weeks for dodging questions about whether her Medicare for All proposal would lead to an increase in taxes.
The big picture: The Massachusetts senator is a co-sponsor of Democratic presidential candidate Sen. Bernie Sanders' Medicare for All Act, but she's yet to reveal details of her strategy.
