Drug Companies Want Tax Breaks After Opioid Epidemic Lawsuit Settlements

The companies that drive the opioid epidemic are poised to make billions by claiming a court settlement for their role in the health crisis as a tax write-off.

The pharmaceutical giants plan to leverage laws passed to help struggling businesses during the COVID-19 pandemic despite their value soaring in recent months, The Washington Post reports.

The settlements stem from a series of lawsuits between four major drug companies and 49 states that accuse them of willfully ignoring the harmful effects their unrelenting dug advocacy was creating. None have taken any responsibility for the epidemic, but they eventually agreed to a combined $26 billion settlement.

Some of that money is now set to be reimbursed by the federal government. Payments to victims have long been eligible for tax deductions, but expanded allowances for businesses passed in the name of COVID-19 relief may expand that refund by 67%.

That’s driven the potential tax rebate above $1 billion per company, with some ranging significantly higher and disclaimers suggesting the tax break could be larger still than current financial statements suggest.

It has some people crying foul. Harry Cullen, an advocate in New York, called the move “incredibly insulting.”

“[It’s] as if they are donating it to these people who they harmed in the first place,” he told The Washington Post.

The drug companies involved maintain they’ve acted responsibly throughout the entire process and are simply trying to reclaim what they’re owed. Though one firm, McKinsey and Company, insists in court that “its past work was lawful and has denied allegations to the contrary,” executives have tried to strike a more balanced tone.

Kevin Sneader, the firm’s global managing partner, told The New York Times: “We deeply regret that we did not adequately acknowledge the tragic consequences of the epidemic unfolding in our communities. With this agreement, we hope to be part of the solution to the opioid crisis in the U.S.”