Drug Companies Might Use Tax Benefits In Opioid Settlement
Fri, 03/25/2022 - 11:01
The four U.S. drug companies involved in the $26 billion national opioid settlement might use certain tax benefits for their settlement expenses.
Cardinal Health, McKesson Corporation, AmerisourceBergen, and Johnson & Johnson are the companies that have promised to pay $26 billion to compensate for their alleged role in the opioid crisis across the U.S.
The House Oversight and Reform Committee has informed about the proceedings as last March the Oversight leaders questioned the companies on their plans to use tax provision in the Coronavirus Aid, Relief and Economic Security (CARES) Act. The committee is mainly concerned that the companies will get billions as tax benefits after harming the American people.
It has even asked the Departments of Justice and Treasury to keep a close look if Cardinal Health is taking illicit advantage of the CARES Act’s loss carryback provision. As per the provision, the company can carry back net losses from 2017 to 2021 to any of the five taxable years foregoing the taxable year in which it faced loss.
The committee showed the concern citing Cardinal Health's last year's response when it mentioned the usage of the provision. On the other hand, J&J and McKesson showed no intentions to use the provision to deal with the opioid litigations.
Since 1999 more than 500,000 people have died from the opioid epidemic. Last year alone the country recorded 100,000 deaths due to drug overdose.
$195.5M From National Opioid Settlement For New Mexico
Fri, 03/25/2022 - 11:00
New Mexico will get $195.5 million from four pharmaceutical companies as part of a national opioid settlement for fueling the opioid crisis throughout the nation.
Drug manufacturer Johnson & Johnson (J&J), along with distributors Amerisource Bergen, Cardinal Health and McKesson agreed to settle a lawsuit brought by 23 states over growing opioid overdoses and abuse rates.
As per the agreement, New Mexico will deliver $107 million to the local governments over the next 18 years, whereas $88 million would be used to fund opioid abatement programs. The abatement activities would include medical assistance and treatment support programs for the people coping with the opioid addiction crisis.
The funds would also be used for public education about drug abuse which would help to address the opioid crisis more effectively. These four companies face the states’ federal lawsuit in Ohio, whereas New Mexico is seeking compensation from more than two dozen other companies. In September, the litigation will go to trial in the state capital of Santa Fe.
All the lawsuits allege that the companies failed to warn the users about the dangers and addictive nature of opioids. Officials representing the state even notified that the patients and parents need to be careful with opioid usage.
Brian McMath, director of the Consumer and Environmental Protection Division of the New Mexico Attorney General’s Office, has asked the users to dispose of these drugs if the prescription is expired. He even notified that the users must thoroughly educate themselves about the risks associated with the drugs and should communicate efficiently with their doctors before consuming the medicines.
Talc Suit Documents Reveal J&J Conducted Awful Experiments
Fri, 03/25/2022 - 10:58
A famous American dermatologist conducted awful experiments from 1951 to 1974, like injecting the African American prisoners with asbestos and talcum powder to see the consequences.
As per the court documents that have surfaced after decades, Johnson & Johnson funded and played a key role in these experiments. The documents would be important in the ongoing talcum litigation against J&J, as it reveals that these unethical experiments explain that the company suspected, or feared the link between talcum powder and asbestos, which is harmful to humans.
The dermatologist conducted unlawful experiments on the black inmates at Holmesburg Prison in Philadelphia, which eventually helped him to earn accolades and notoriety as he made significant advances in dermatology and anti-acne medications. However, he was unapologetic for his actions and said that everything he did was legal at that time. He died in 2010.
The documents revealed that J&J funded these experiments during the 1970s to study the side effects of talcum powder exposure compared to asbestos exposure. It is also revealed that some of the experiments were funded by the U.S. government and Dow Chemical.
The spokesperson for J&J said that the company regrets being part of these experiments, and the dermatologist's actions do not reflect the company's values.
The ongoing talcum litigation was at a halt after a federal judge allowed the company to move forward with the bankruptcy move. But, these documents would change the outcome of the litigation, and J&J might require to pay more amount to the plaintiffs.
Currently, J&J faces about 38,000 lawsuits over its products Baby Powder and Shower-to-Shower. All the lawsuits allege that the plaintiffs got diagnosed with ovarian cancer, mesothelioma and other injuries because of exposure to talc and asbestos, which is present in the talcum powder. The lawsuits even allege that the company sold the products without providing relevant guidelines to alert the users about health risks associated with talcum usage.
U.S. District Judge Freda L. Wolfson in the District of New Jersey is overlooking most of the talc litigations which are currently pending in the federal court system as part of an MDL.