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Judge in Massive Johnson & Johnson Opioid Case Miscalculates Payment by $107M

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  • An Oklahoma judge admitted he made a $107 million miscalculation on the $572 million Johnson & Johnson fine that the company was ordered to pay the state in August.
  • The ruling, citing deceptive practices in Johnson & Johnson’s opioid marketing, was the first time a judge held a pharmaceutical company responsible for the opioid crisis.
  • Johnson & Johnson is now instead expected to pay $465 million because the judge accidentally added three zeros to a provision that required it to help the state develop a program for treating babies born with conditions related to drug dependencies.
  • Johnson & Johnson has been working to lower or eradicate the fine and appealed the decision in September with the Oklahoma Supreme Court, calling the ruling an unprecedented interpretation of state law.

Judge Miscalculated Payment

An Oklahoma judge admitted to making a $107 million mistake on Tuesday, after having previously fined Johnson & Johnson $572 million for its role in worsening the opioid crisis.

On Aug. 26, Judge Thad Balkman concluded that Johnson & Johnson’s deceptive practices led to higher rates of addiction and overdose. The lawsuit was the first instance where a judge held a pharmaceutical company responsible for the opioid crisis.

Balkman met with both the state and Johnson & Johnson on Tuesday to discuss the company’s payment. Prior to the meeting, Johnson & Johnson attorneys submitted a filing that alleged a figure of $107,683,000 had been miscalculated.

“No evidence supports this higher amount, which appears simply to reflect a mistaken addition of three zeros to the calculation of the annual average,” the filing states, “yet the state’s proposed judgment fails to account for this discrepancy.”

The payment concerned a provision to help the state develop a program for treating babies with neonatal abstinence syndrome, a condition that could arise if babies are born with drug dependencies because their mothers were taking opioid while pregnant.

Balkman then agreed with Johnson & Johnson, realizing the payment should have been $107,683. This new correction would essentially lower the fine to $465 million, but Balkman hasn’t issued his final order, so that number could still change. 

“I acknowledge the computing error contained in my August 26th judgment, Balkman said. That will be the last time I use that calculator.”

The Lawsuit

Balkman handed down his decision after a seven-week trial stemming from a lawsuit by the state of Oklahoma.

While Johnson & Johnson is widely known for manufacturing products like shampoo and lotion, it also deals in pharmaceuticals. In fact, the company has a huge stake in manufacturing opioids, with many of the raw ingredients used in other companies’ opioid products coming from Johnson & Johnson.

During the trial, Oklahoma Attorney General Mike Hunter argued more than 4,500 people in the state died from opioid overdoses between 2007 and 2017.

The lawsuit was argued on the basis that Johnson & Johnson violated public nuisance laws, which generally pertain to property disputes but are broad and can be applied to health issues. Following Balkman’s ruling, many hailed the case as a landmark decision and predicted that it would set a precedent for future cases against other major pharmaceutical companies.

While Balkman originally ordered Johnson & Johnson to pay $572 million, Oklahoma had asked for $17.5 billion as part of a 30-year plan to cover a number of services—including treatment for victims, emergency care, law enforcement, social services, and other addiction-related needs

Balkman, however, said the state hadn’t provided “sufficient evidence”  for costs past the first year.

What’s Next for Johnson & Johnson?

Johnson & Johnson is continuing to fight to lower and even eradicate their fine. In September, the company filed an appeal to the Oklahoma Supreme Court, arguing that the ruling was an unprecedented interpretation of state law.

Until Johnson & Johnson knows if that appeal will be heard, however, it has focused its efforts on reducing its court-ordered payout to $355 million. That payment would reflect two settlements reached by both Teva Pharmaceuticals and Purdue Pharma who were also originally named in the same Oklahoma lawsuit. 

The push for a smaller fine also comes as Balkman decides whether the court will continue to monitor the opioid crisis in Oklahoma and whether he could potentially require Johnson & Johnson to shell out more money over the next 20 years.

“The evidence isn’t that one year is enough,” an attorney for the state argued. “We’ll take one year, but it’s going to take more than that.”

And all of this comes as another major opioid lawsuit began selecting its jury in Cleveland, Ohio on Wednesday.

See what others are saying: (CBS News) (KTUL) (CNN)

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Lawmakers Call For Action as Oil Companies Post Record Profits Amid Rising Gas Prices

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A recent analysis from the Center for American Progress found that the top five oil companies earned over 300% more in profits during the first quarter of 2022 than the same period last year.


As Consumer Prices Climb, Big Oil Profits

American oil companies are facing increased scrutiny over profiteering practices as gas prices continue to surpass record highs driven by Russia’s ongoing war in Ukraine.

Last week, costs surged to above $4 per gallon in all 50 states for the first time ever, according to the auto club AAA. Prices are currently averaging over $4.59 per gallon nationwide, which is 50% higher than they were this time last year.

In addition to consumers hurting at the pump, there are also rising concerns for industries that rely on fuel and oil like trucking, freight, airlines, and plastic manufacturers. 

To account for high prices, some in sectors have responded by ramping up prices further down the supply chain to account for costs, putting even more of a burden on consumers to pay for everyday items.

But as Americans struggle with sky-high gas prices at a time of record inflation, recently released earnings reports show that many of the world’s largest oil companies thrived in the first quarter of 2022.

ExxonMobil more than doubled its earnings from the same period last year, reporting a net profit of $5.5 billion. Meanwhile, Chevron logged its best quarterly earnings in almost a decade, and Shell had its highest earnings ever.

According to a new analysis conducted by the Center for American Progress, the top five oil companies — including the three mentioned above —  earned over 300% more in profits this quarter than during the same time last year.

“In fact, these five companies’ first-quarter profits alone are equivalent to almost 28 percent of what Americans spent to fill up their gas tanks in the same time period,” the report noted.

Per Insider, for at least four of those companies, that growth marks a tremendous increase in profits from even before the pandemic.

Lawmakers Ramp-Up Efforts to Reduce Prices

To address these startling disparities, federal lawmakers have moved in recent weeks to increase pressure on oil companies and take steps to lower prices.

On Thursday, the House of Representatives passed a bill proposed by Rep. Katie Porter (D-Ca.) that aims to reduce gas prices. The legislation, called The Consumer Fuel Price Gouging Prevention Act, would give the president the authority to issue an Energy Emergency Declaration that would be effective for up to 30 days with the possibility of being renewed.

In that emergency period, it would be illegal for anyone to increase gas or home energy fuel prices to a level that is exploitative or “unconscionably excessive.” 

The proposal would also give the Federal Trade Commission the power to investigate and manage instances of price gouging from larger companies and give state authorities the ability to enforce price-gouging violations in civil courts.

The bill, which has already seen widespread opposition from Republicans and extensive lobbying from pro-oil interest groups, faces an uphill battle in the 50-50 split Senate.

During debate on the act Thursday, Rep. Porter delivered an impassioned speech accusing oil companies of driving their record profits by using their market power to unfairly increase prices.

“The oil and gas industry currently has more than 9,000 permits to drill for oil on federal land, but they are deliberately keeping production low to please their investors and increase their short-term profits,” she said. “Even when the price of crude oil falls, oil and gas companies have refused to pass those savings on to consumers.”

“Let me be clear: price gouging is anti-capitalist,” Porter continued. “It exploits a lack of competition, which is a hallmark of capitalism. It is an effort to juice corporate profits at the expense of customers. Energy markets are reeling because of Russia’s invasion of Ukraine. Big oil companies, however, are using this temporary chaos to cover up their abuse.”

See what others are saying: (The Washington Post) (Vox) (NPR)

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Lincoln College to Close for Good After COVID and Ransomware Attack Ruin Finances

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Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.


One of the Only Historically Black Colleges in the Midwest Goes Down

After 157 years of educating mostly Black students in Illinois, Lincoln College will close its doors for good on Friday.

The college made the announcement last month, citing financial troubles caused by the coronavirus pandemic and a ransomware attack in December.

Enrollment dropped during the pandemic and the administration had to make costly investments in technology and campus safety measures, according to a statement from the school.

A shrinking endowment put additional pressure on the college’s budget.

The ransomware attack, which the college has said originated from Iran, thwarted admissions activities and hindered access to all institutional data. Systems for recruitment, retention, and fundraising were completely inoperable at a time when the administration needed them most.

In March, the college paid the ransom, which it has said amounted to less than $100,000. But according to Lincoln’s statement, subsequent projections showed enrollment shortfalls so significant the college would need a transformational donation or partnership to make it beyond the present semester.

The college put out a request for $50 million in a last-ditch effort to save itself, but no one came forward to provide it.

A GoFundMe aiming to raise $20 million for the college only collected $2,452 as of Tuesday.

Students and Employees Give a Bittersweet Goodbye

“The loss of history, careers, and a community of students and alumni is immense,” David Gerlach, the college’s president, said in a statement.

Lincoln counts nearly 1,000 enrolled students, and those who did not graduate this spring will leave the institution without degrees.

Gerlach has said that 22 colleges have worked with Lincoln to accept the remaining students, including their credits, tuition prices, and residency requirements.

“I was shocked and saddened by that news because of me being a freshman, so now I have to find someplace for me to go,” one student told WMBD News after the closure was announced.

When a group of students confronted Gerlach at his office about the closure, he responded with an emotional speech.

“I have been fighting hard to save this place,” he said. “But resources are resources. We’ve done everything we possibly could.”

On April 30, alumni were invited back to the campus to revisit the highlights of their college years before the institution closed.

On Saturday, the college held its final graduation ceremony, where over 200 students accepted their diplomas and Quentin Brackenridge performed the Lincoln Alma Mater.

Last year, 1,043 schools in the U.S. were the victim of ransomware attacks, including 26 colleges or universities, according to an analysis by Emsisoft.

See what others are saying: (The New York Times) (Herald Review) (CNN)

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U.S. Tops One Million Coronavirus Deaths, WHO Estimates 15 Million Worldwide

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India’s real COVID death toll stands at about 4.7 million, ten times higher than official data, the WHO estimated.


One Million Dead

The United States officially surpassed one million coronavirus deaths Wednesday, 26 months after the first death was reported in late February of 2020.

Experts believe that figure is likely an undercount, since there are around 200,000 excess deaths, though some of those may not be COVID-related.

The figure is the equivalent of the population of San Jose, the tenth-largest city in the U.S., vanishing in just over two years. To put the magnitude in visual perspective, NECN published a graphic illustrating what one million deaths looks like.

At the beginning of the pandemic, the White House predicted between 100,000 and 240,000 Americans would die from the coronavirus in a best-case scenario.

By February 2021, over half a million Americans had died of COVID.

The coronavirus has become the third leading cause of death in the U.S. behind heart disease and cancer.

The pandemic’s effects go beyond its death toll. Around a quarter of a million children have lost a caregiver to the virus, including about 200,000 who lost one or both parents. Every COVID-related death leaves an estimated nine people grieving.

The virus has hit certain industries harder than others, with food and agriculture, warehouse operations and manufacturing, and transportation and construction seeing especially high death rates.

People’s mental health has also been affected, with a study in January of five Western countries including the U.S. finding that 13% of people reported symptoms of PTSD attributable to actual or potential contact with the virus.

Fifteen Million Dead

On Thursday, the World Health Organization estimated that nearly 15 million people have died from the pandemic worldwide, a dramatic revision from the 5.4 million previously reported in official statistics.

Between January 2020 and the end of last year, the WHO estimated that between 13.3 million and 16.6 million people died either due to the coronavirus directly or because of factors somehow attributed to the pandemic’s impact on health systems, such as cancer patients who were unable to seek treatment when hospitals were full of COVID patients.

Based on that range, scientists arrived at an approximate total of 14.9 million.

The new estimate shows a 13% increase in deaths than is usually expected for a two-year period.

“This may seem like just a bean-counting exercise, but having these WHO numbers is so critical to understanding how we should combat future pandemics and continue to respond to this one,” Dr. Albert Ko, an infectious diseases specialist at the Yale School of Public Health who was not linked to the WHO research, told the Associated Press.

Most of the deaths occurred in Southeast Asia, Europe, and the Americas.

According to the WHO, India counts the most deaths by far with 4.7 million, ten times its official number.

See what others are saying: (NBC) (U.S. News and World Report) (Scientific American)

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