- Five pharmaceutical companies reached a $261 million settlement to avoid a lawsuit that accused them of contributing to the opioid crisis.
- The settlements were reached around midnight Monday, just hours before the trial was set to begin.
- The immediate trial was averted, but these companies—as well as Johnson & Johnson—are not free of the larger case, which is a consolidation of more than 2,500 lawsuits from various state and local governments.
New Settlements Avert Immediate Trial
Five companies involved in a massive federal opioid lawsuit settled with two Ohio counties early Monday morning, paying $261 million dollars to avert the first trial in a larger case.
These settlements do not prevent the full trial, but they do delay it significantly. The portion of the trial scheduled to begin Monday would have involved both Cuyahoga and Summit counties and would have been known as a “bellwether trial,” a beginning trial examining a smaller portion of the larger case.
The outcome of it would have then been used to anticipate the results of the larger case, which is a consolidation of more than 2,500 lawsuits lodged by cities, counties, tribes, and states. It accuses the companies of contributing to the opioid crisis.
Companies originally involved in the lawsuit include AmerisourceBergen, Cardinal Health, and McKesson—which are known as the “Big Three” drug distributors in the country. Walgreens, Teva Pharmaceuticals, Purdue, and Johnson & Johnson were also named.
Between midnight and 1:00 a.m., the “Big Three” averted the first of the trials by agreeing to pay a combined $215 million to Ohio’s Cuyahoga and Summit counties. Teva additionally reached an agreement to pay $20 million in cash and another $25 million in suboxone, which is a drug used to treat opioid addiction.
Additionally, Henry Schein Medical agreed to pay $1.25 million.
“If this was a war, today was supposed to be D-Day, where we engage the enemy and storm the beach,” Paul Farrell Jr., an attorney for the two counties, told NPR. “So, last night at 11:50 p.m., the defendants retired from the field and decided to settle this particular skirmish rather than fight.”
Previously, the lone judge presiding over the cases encouraged both sides to reach settlements in order to prevent a potentially lengthy and bitter trial, meaning victims of the opioid crisis would begin to start seeing money sooner.
Notably, Walgreens did not reach any settlements, but its trial has now been delayed for up to six months, provided the pharmacy doesn’t end up reaching a settlement of its own beforehand.
As for that larger trial involving the other 2,500 lawsuits, those are still scheduled to begin early next year if these companies fail to reach additional settlements.
The case has been closely scrutinized as a potentially precedent-setting trial; however, by settling, these companies prevent a landmark decision by the federal government that could serve as a legal litmus test for holding opioid companies accountable.
Purdue and Johnson & Johnson Settle
Purdue was the first pharmaceutical company listed in the trial to settle, notably reaching a global agreement of $12 billion.
Purdue then filed for Chapter 11 bankruptcy, which is still pending and will eventually be expected to form a new company that will continue manufacturing the painkiller OxyContin. The new company is expected to also donate addiction treatment and overdose reversal drugs.
The owners of Purdue were also expected to pay no less than $3 billion and up to $4.5 billion of the grand total, though some state attorneys generals said the fine did not account for the damages they’ve seen their states.
“These people are among the most responsible for the trail of death and destruction the opioid epidemic has left in its wake,” North Carolina AG Josh Stein said in a promise to go directly after the Sacklers.
On Oct. 1, Johnson & Johnson reached a settlement for $20.4 million dollars for Cuyahoga and Summit counties.
Johnson & Johnson Loses Oklahoma Trial
In August, Johnson & Johnson became the first pharmaceutical company to lose a case holding it responsible for the opioid crisis.
The case, which is lost to the state of Oklahoma, was considered a precedent among experts, though Johnson & Johnson has appealed it to the state’s Supreme Court.
At the time, Johnson & Johnson had been ordered to pay $572 million, but that number was later brought down by $107 million after a miscalculation by Judge Thad Balkman. Balkman said the number could continue to change before he gives his final order.
Instagram Testing New Tools To Verify Users Are Over 18
The new tools include AI software that analyzes video footage of a person’s face to verify their age.
Instagram Cracks Down on Underage Users
Instagram is testing new features in the United States to verify the age of users who claim to be over 18 years old.
According to a statement from Instagram’s parent company, Meta, the tools will only apply to users who seek to change their age from under 18 to over 18. The platform previously asked for users to upload their ID for verification in this process, but on Thursday, it announced there will be two new methods for confirming age.
One of the strategies was referred to as “social vouching.” Using this option, people can request that three mutual Instagram followers over the age of 18 confirm their age on the platform.
The other method allows users to upload a video selfie of themselves to be analyzed by Yoti, third-party age verification software. Yoti then estimates a person’s age based on their facial features, sends that estimate to Meta, and both companies delete the recording.
According to Meta, Yoti cannot recognize or identify a face based on the recording and only looks at the pixels to determine an age. Meta said that Yoti “is the leading age verification provider for several industries around the world,” as it has been used and promoted by social media companies and governmental organizations.
Still, some question how effective it will be for this specific use. According to The Verge, while the software does have a high accuracy rate among certain age groups and demographics, data also shows it is less precise for female faces and faces with darker skin tones.
Issues With Kids on Instagram
Meta argues that it is important for Instagram to be able to discern who is and is not 18, as it impacts what version of the app users have access to.
“We’re testing this so we can make sure teens and adults are in the right experience for their age group,” the company’s statement said.
“When we know if someone is a teen (13-17), we provide them with age-appropriate experiences like defaulting them into private accounts, preventing unwanted contact from adults they don’t know and limiting the options advertisers have to reach them with ads,” it continued.
These changes come as Instagram has been facing increased pressure to address the way its app impacts younger users.
Only children 13 and older are allowed to have Instagram accounts, but the service has faced criticism for not doing enough to enforce this. A 2021 survey of high school students found that nearly half of the respondents had created a social media account of some kind before they were 13.
The company also recently came under fire after The Wall Street Journal published internal Meta documents revealing that the company knew that it harmed teens, including by worsening body image issues for young girls and women.
See what others are saying: (The Verge) (The Wall Street Journal) (Axios)
Elon Musk Threatens to Fire Employees Unless They Work in Person Full-Time
The world’s richest man in the world previously suggested that the popularity of remote work has “tricked people into thinking that you don’t actually need to work hard.”
“If You Don’t Show up, We Will Assume You Have Resigned”
On Wednesday, Electrek published two leaked emails apparently sent from Elon Musk to Tesla’s executive staff threatening to fire them if they don’t return to work in person.
“Anyone who wishes to do remote work must be in the office for a minimum (and I mean *minimum*) of 40 hours per week or depart Tesla,” he wrote. “This is less than we ask of factory workers.”
“If there are particularly exceptional contributors for whom this is impossible, I will review and approve those exceptions directly,” he continued.
Musk then clarified that the “office” must be a main office, not a “remote branch office unrelated to the job duties.”
“There are of course companies that don’t require this, but when was the last time they shipped a great new product? It’s been a while,” he wrote in the second email.
Later on Wednesday, a Twitter user asked Musk to comment on the idea that coming into work is an antiquated concept.
He replied, “They should pretend to work somewhere else.”
The Billionaire Pushes People to Work Harder
Musk has a history of pressuring his employees and criticizing them for not working hard enough.
“All the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound,” he tweeted last month.
Three economists told Insider that remote work during the pandemic did not damage productivity.
“Most of the evidence shows that productivity has increased while people stayed at home,” Natacha Postel-Vinay, an economic and financial historian at the London School of Economics, told the outlet.
Musk is notorious for criticizing lockdown mandates and went so far as to call them “fascist” during a Tesla earnings call in April 2020.
Not long before that, Tesla announced that it would keep its Fremont, California plant open in defiance of shelter-in-place orders across the state.
In an interview with The Financial Times last month, Musk blasted American workers for trying to stay home, comparing them to their Chinese counterparts whom he said work harder.
“They won’t just be burning the midnight oil. They will be burning the 3 a.m. oil,” he said. “They won’t even leave the factory type of thing, whereas in America people are trying to avoid going to work at all.”
That same day, Fortune published an article detailing how Tesla workers in Shanghai work 12-hour shifts, six days out of the week, sometimes sleeping on the factory floor.
See what others are saying: (CNBC) (Electrek) (Business Insider)
Apple Raises Worker Pay as Unions Gain Ground
The company’s vice president of people and retail was caught trying to dissuade employees from unionizing in a leaked video.
Labor Squeezes Apple into Submission
Apple announced Wednesday that its U.S. corporate and retail employees will see a pay increase later this year, with starting wages bumped from $20 per hour to $22, though stores in certain regions may get more depending on market conditions.
Starting salaries are also expected to increase.
“Supporting and retaining the best team members in the world enables us to deliver the best, most innovative, products and services for our customers,” an Apple spokesman said in a statement. “This year as part of our annual performance review process, we’re increasing our overall compensation budget.”
Some workers were told their annual reviews would be moved up three months and that their pay increases would take effect in early July, according to a memo reviewed by The Wall Street Journal. Furthermore, they were told the increased compensation budget would be in addition to pay increases and special awards already received within the past year.
Feeling squeezed by low unemployment and high inflation, tech companies like Google, Amazon, and Microsoft have changed their compensation structures in recent weeks to pay workers more, and Apple is the latest to bend to market pressure.
Unions Gaining Traction
On Wednesday, The Verge received a leaked video of Apple’s vice president of people and retail, Deirdre O’Brien, explicitly dissuading employees from unionizing.
“I worry about what it would mean to put another organization in the middle of our relationship,” she said. “An organization that does not have a deep understanding of Apple or our business. And most importantly one that I do not believe shares our commitment to you.”
She vocalized more anti-union talking points, like the idea that the company will not be able to make important decisions as quickly with a collective bargaining agreement.
O’Brien has been personally visiting retail stores over the past few weeks in an apparent bid to combat budding union activity.
Apple stores in three locations — New York, Georgia, and Maryland — are currently pushing to unionize, with the latter two set to vote in elections on June 2 and 15, respectively. In response to these efforts, Apple has hired anti-union lawyers, given managers anti-union scripts, and held anti-union captive audience meetings.
In the United States, unionized workers make about 13.2% more than non-unionized workers in the same sector, according to the Economic Policy Institute.
As of Wednesday, Apple’s shares had fallen 21% since the start of the year, but sales grew 34% last year to almost $300 billion.