Shares of Endo International plc ENDP rose 18.4% after the company announced that its subsidiaries have reached a settlement in principle with the County of Cuyahoga, Ohio, the County of Summit, Ohio, and certain related persons in connection with the pending lawsuits in various U.S. District cases.
The settlement will resolve the Track 1 Cases in connection with claims related to the manufacturing, marketing, distribution, supply, sale, prescribing, use and/or abuse of branded and generic opioid medications. The cases are scheduled to go to trial in October 2019.
Per the settlement terms, Endo will pay a total sum of $10 million and provide up to $1 million of Vasostrict and Adrenalin products free of charge.
Moreover, the settlement will include no admission of wrongdoing, fault or liability of any kind by the Endo Entities and is based on the avoidance of litigation risk and associated costs.
The settlement relieves Endo of a major hangover, giving its investors some respite. Notably, shares of the company have slumped 58.1% in the year so far against the industry’s 6.9% growth.
While the company still has many pending litigations related to opioid drugs, investors seem upbeat about the settlement terms of these cases. We remind investors that Endo withdrew its opioid pain medication, Opana ER (oxymorphone hydrochloride extended release), from the market over abuse concerns in 2017.
Allergan too AGN has reportedly settled cases related to branded opioid drugs. We note that bigwigs like Johnson & Johnson JNJ and Teva Pharmaceuticals TEVA are embroiled in similar lawsuits as well.
Endo currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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