Baltimore is settling with Cardinal Health for more than $152 million just one day after a judge ruled that the city can continue its lawsuit against a handful of drug manufacturers for their role in the opioid crisis.
Cardinal Health was one of the three biggest distributors of opioids in the city.
The settlement is the largest payout to Baltimore for opioids to date. In total, the city has received almost a quarter of a billion dollars in funds. Earlier this year, the city got $45 million each from CVS and Allergan.
Baltimore is independently suing multiple opioid companies because of how much the drugs impacted the city.
So far, the gamble has paid off. While it’s taken longer to reach settlements, if Baltimore had signed onto the global settlement with other states it would have only received $70 million over 20 years from Cardinal Health and three other companies.
“We have said from the beginning that we are committed to do the right thing, not the popular thing or the easy thing – and these settlements are proof that our decision to reject the global settlements and carry on this fight was the right one,” said Mayor Brandon Scott. “The city and our extraordinary outside counsel built an overwhelming case against the opioid companies, and we have recovered vastly more resources than we would have under the global settlements. As our city and partners continue our daily work combatting the impacts of Baltimore’s opioid epidemic that these manufacturers and distributors caused, the resources delivered by these settlements will have a transformative impact on our work.”
On Thursday, a city judge dismissed efforts by drug firms to throw out Baltimore’s case. The city is still in litigation with five other entities including Johnson & Johnson. That case is scheduled to go to trial on Sept. 16.
Baltimore has paid a high amount in legal fees for the settlements. The city spent about 40% of its settlement money on lawyer fees in its agreement with Allergan. However, the city still came out with more money than if it signed on to the global settlement.
Baltimore says it will use all of its settlement money, after legal fees, for opioid remediation.
It’s already pledged $5 million for Tuerk House, Inc., $5 million for Helping Up Mission; $3 million for Baltimore Safe Haven; $3 million for HOPE Safe Haven; $2 million for More Than a Shop; $1 million for Marian House; and $1 million for Turnaround Tuesday.
