CANTON -- St. Lawrence county is set to receive millions of dollars as part of a large-scale civil lawsuit against pharmaceutical companies that downplayed the effects of opioids, but officials say a …
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CANTON -- St. Lawrence county is set to receive millions of dollars as part of a large-scale civil lawsuit against pharmaceutical companies that downplayed the effects of opioids, but officials say a final figure is not yet known.
That's because as more counties sign on to the agreement, more money is distributed.
County Attorney Steve Button, who has taken an active role in the process on behalf of St. Lawrence County, said it's a case of "the more, the merrier."
"As more counties sign on, those figures will actually increase," Button said.
It all began in 2006 when the U.S. Department of Justice began an investigation into Purdue Pharma and the Sackler Family for downplaying the effects of the opioids being produced and marketed by the corporation.
Button said litigation was launched in 2006 by the U.S. DOJ against the corporation, a rare occurrence, that eventually led to major settlements in a criminal case.
"There were actually criminal charges filed stemming from the federal investigation and evidence was deemed to clearly show that Purdue and the Sacklers misled prescribers and those in the industry regarding just how addictive these opioids were," Button said.
He commented that evidence from the DOJ showed the Sacklers in particular were well aware of the addictive nature of the drugs and were the lynchpin of the criminal case.
Civil suits soon followed, beginning in 2009 and 2010, allowing those personally affected to sue the companies who produced and distributed the drugs.
"Since 2019 we're been engaged in opioid litigation and have secured a number of settlements over the course of the last five years," Button told legislators.
Button said the smaller manufacturers played a central role in the manufacturing, distribution and marketing of such drugs, but were found to be less culpable than Purdue Pharma and the Sacklers.
As part of one settlement against a number of smaller manufacturers, St. Lawrence County will receive a baseline of $4.5 million to $6 million.
But said that figure will only go up as more entities sign on to the settlement, Button said.
"We actually want to encourage our brethren across the counties and towns to participate in the settlement. This really is a situation where the more the merrier," Button said.
Running contrary to what most would think, settlement figures will only go up as more entities sign on due to the nature of the agreement.
Button said the settlement is structured in such a way that each company will have to pay out more for their allotment based on the number of parties in the settlement, something the attorneys worked into the deal when negotiating with the drug manufacturers.
In a second resolution passed by the board, Button said the settlement will come after many states that participated in the litigation took exception with the original agreement, leading to a second settlement.
"They felt that the original agreement allowed the Sackler family to control too much and retain too much following their wrongdoing," Button said.
Button said attorneys argued that the criminal proceedings and judgement did not strip the Sacklers of enough power and did not carry heavy enough fiscal penalties.
Through the criminal action and case set forth by the DOJ, the corporation received one of the largest fines ever secured against a corporation in U.S. history, Button said.
"You don't normally see a criminal case against a corporation, though it's theoretically possible and did occur in this case," Button said.
He said the county had until September 30 to accept the agreement, with a final figure likely to be announced sometime in November or December.
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