If you think about opioid pandemic, you might think about the Sackler family and their company Purdue Pharma and you would be partly correct about who is to blame. The reality is there are multiple players who should have known or done something because Purdue Pharma was the manufacturer of the drugs, the next step is the distributors to the pharmacies around the country and then prescriptions written by doctors. In many situations there are many players and that is why it is complicated to pin down blame and hold someone accountable.
In an article from the Associated Press, Johnson & Johnson or J & J, Amerisource-Bergen, Cardinal Health and McKesson finalized countrywide settlements over their role in the opioid addiction crisis. The settlement is money or $26 billion and will flow to states beginning in April. The companies were waiting for getting participation from a critical mass of state and local governments, for example California will receive $86 for programs. The states that are not included are Alabama, New Hampshire, Oklahoma, Washington and West Virginia they are working on their own deals.
Linking to dividend paying stocks, with settlements in the billions and the companies seeming not missing any financial steps or reporting one time earnings decline, the opioid crisis for a long time was a very profitable business for the drug companies. However, since all the companies had to pay it shows that times can change and companies are seemingly accountable for their actions. While there always is a great desire to make profits to pay dividends, breaking the law is never good.
There are more questions than answers, till the next time – to raising questions.