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SettlementCritical RiskMultistate

State AGs Settle with Endo for $450M Over Deceptive Opioid Marketing

Endo International plcAugust 17, 2022Connecticut Attorney General

Penalty Amount

$450,000,000

Summary

State attorneys general reached a $450 million settlement with opioid manufacturer Endo International plc as part of its bankruptcy. The settlement resolves allegations of deceptive marketing that downplayed addiction risks and overstated benefits, particularly for Opana ER. Endo must pay $450 million over 10 years, ban opioid marketing forever, and disclose millions of documents.

Remedy

Endo must pay $450 million over 10 years to participating states and subdivisions, permanently ban the marketing of its opioids, and turn over millions of opioid-related documents for publication in a public online archive, including paying $2.75 million for archival expenses.

Monetary PenaltyBanReporting Requirements

Contract Impact

In-house legal teams should review vendor agreements with pharmaceutical distributors, customer agreements with healthcare providers and pharmacies, and employee contracts for sales and marketing personnel. Key clauses to examine include marketing and promotional restrictions, representations and warranties regarding product safety and efficacy, compliance with laws and regulatory actions, indemnification obligations for fines or settlements, termination provisions for misconduct, and document retention/disclosure requirements. Changes may be needed to permanently ban opioid marketing, update product claim substantiation requirements, incorporate settlement payment schedules over 10 years, enhance document production obligations for public archives, and strengthen indemnification for deceptive marketing allegations.

Contract Search Terms

marketing prohibitiondeceptive practices clauseproduct claim representationssettlement payment termsdocument disclosure requirementscompliance with regulatory actionsindemnification for finestermination for misconduct

Violation Types

Entity Details

Entity

Endo International plc

Also known as: Endo

Industry

Healthcare

Multistate Coalition

MaineMassachusettsNew HampshirePennsylvaniaTennesseeVermontVirginiaArizonaColoradoDelawareDistrict of ColumbiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyMichiganMinnesotaMissouriMontanaNebraskaNevadaNew JerseyNorth CarolinaNorth DakotaRhode IslandSouth CarolinaSouth DakotaUtahWashingtonWisconsinWyomingU.S. Virgin Islands

Official Sources

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