Questions raised over adequacy of Canada's $150M settlement with opioid maker

B.C. officials say a $150 million proposed settlement with an opioid manufacturer is an "important step" in the toxic drug crisis.

But a B.C. mom whose son died of an overdose says it's nowhere near enough money to make any kind of a difference. And a Vancouver lawyer specializing in class action lawsuits agrees that the amount of money is relatively small.

On Wednesday, the province announced a settlement with Purdue Pharma Canada, on behalf of governments across Canada, to recover health-care costs related to the sale and marketing of opioid-based pain medication.

Opioids make up a significant part of the province's toxic drug supply, with 2,236 deaths from overdoses last year alone. More than 88 per cent of deaths from July 2020 to April 2022 were caused by the potent opioid fentanyl.

The province had filed a lawsuit in 2018 against over 40 drug manufacturers and retailers in an attempt to recover health-care costs related to the crisis.

Purdue Pharma — whose U.S. parent company is currently in bankruptcy proceedings — has now agreed to settle for $150 million, to be divided among the various Canadian provinces.

"We know the settlement will not make up for the lives lost, the terrible loss of loved ones in our communities, so our government remains steadfast in its commitment to end the public health emergency,'' said B.C. Addictions Minister Sheila Malcolmson.

But for Leslie McBain, whose son Jordan died of an opioid overdose, the settlement is a "drop in the bucket."

"It does send a message, you know, that Purdue Pharma is culpable," she said. "But the amount of money is … I would almost say laughable.

"We're always happy … to get money. No question about it … but spread across Canada, this does not impact the emergency that we are in."

Impact very little in short-term

Oxycodone, one of the drugs that led to Jordan's death, is the generic version of OxyContin, a Purdue drug. 

Officials say the manufacturer downplayed the risks of its drugs when advertising them to physicians, especially regarding their addictive potential, contributing to the opioid crisis.

A 2015 study in B.C. found a positive link between the rate of doctors prescribing opioids and the rate of people unintentionally overdosing on them.

McBain said the message sent with the settlement was good, and she hopes medical professionals are more judicious with how they prescribe opioids going forward.

"It's pretty well known now what Purdue did over the last 20 years is just reprehensible," she said. "This $150 million brings Purdue back into the public eye."

But McBain says the real problem with the toxic drug crisis in 2022 was not doctors over-prescribing but a toxic illicit supply.

"I hope that maybe little bits of those [settlements] go into drug treatment, into implementing a regulated supply," she said.

"Everybody in the know says that we need a regulated legal supply, so people don't die … I think Big Pharma is definitely culpable. That's being shown. But this is not going to solve the problem."

Could be 'icebreaker settlement'

David Klein, a class action lawyer with Klein Lawyers in Vancouver, says the settlement amount is very little due to Purdue's bankruptcy proceedings.

B.C. Attorney General David Eby said the settlement was a "remarkable achievement" given how many people are currently suing Purdue.

Klein thinks the settlement could be the start of something bigger regarding class-action suits against drug companies — something he referred to as an "icebreaker settlement."

"An icebreaker settlement is one that involves the case against a dozen or more possible defendants. It provides the plaintiff — in this case, the provinces — with access to documents and information that will help in the claim against the other defendants."

The Purdue suit was one of dozens filed against numerous drug companies, with billions of dollars sought by the provinces. British Columbia's application for certification of its class-action lawsuit had been scheduled to be heard in B.C. Supreme Court in the fall of 2023.

In a statement to CBC News, Purdue said the settlement "includes no admission of wrongdoing or liability on the part of Purdue Canada or any of its related parties" — something Klein said was typical with class-action settlements.