California Judge Rules For Drugmakers In Major Opioid Litigation

A California judge cleared four drugmakers of liability, accusing the companies of causing widespread opioid addiction in the state. Teva Pharmaceuticals Industries Ltd TEVA, AbbVie Inc's ABBV Allergan unit, Johnson & Johnson JNJ, and Endo International PLC ENDP have been found not liable in a California lawsuit filed.

Related Link: Drug Distributors Ink First Opioid Settlement With Cherokee Nation.

Officials in Los Angeles, Santa Clara, and Orange counties and the city of Oakland sought as much as $50 billion to beef up policing and treatment budges depleted by the epidemic. The ruling marked the first trial win for drug companies in the over 3,300 lawsuits filed by states and local governments over the "opioid crisis."

"The court finds plaintiffs failed to prove an actionable public nuisance for which the defendants are legally liable," Superior Court Judge Peter Wilson concluded in a tentative ruling.

The lawsuit was initially filed in mid-April 2021 when the three California counties and the city of Oakland accused the drugmakers of fueling the opioid crisis in the U.S, which has led to a staggering nearly 500,000 deaths over two decades from opioid overdosing.

Also Read: Endo Shares Move Higher On Settlement Of New York State Opioid Cases.

Price Action: TEVA shares are up 7.69% at $9.94, ENDP stock is up 7.13% at $4.96 during the premarket session on the last check Tuesday.