Attorney General’s Office, others reach $3.5M settlement with drug wholesaler

By Kyla Asbury | Jan 3, 2017

CHARLESTON — The West Virginia Attorney General’s Office, together with the state’s Departments of Health and Human Resources and Military Affairs and Public Safety, announced a $3.5 million settlement with H.D. Smith Wholesale Drug Co., pushing the total paid to West Virginia by 10 drug wholesalers to more than $11 million.

CHARLESTON — The West Virginia Attorney General’s Office, together with the state’s Departments of Health and Human Resources and Military Affairs and Public Safety, announced a $3.5 million settlement with H.D. Smith Wholesale Drug Co., pushing the total paid to West Virginia by 10 drug wholesalers to more than $11 million.

The H.D. Smith agreement represents the largest settlement to date in the lawsuit against a dozen drug companies.

This week’s settlement resolves allegations that H.D. Smith failed to detect, report and stop the flood of suspicious drug orders into West Virginia.

The settlement requires the wholesaler to comply with state law in reporting suspicious orders.

The plaintiffs intend to use their portions of settlement funds to further the collective fight against substance abuse in West Virginia.

H.D. Smith denied any allegation of liability as part of the agreement. The lawsuit alleged it distributed far fewer pills than some other defendants in the case.

The settlement received approval from the Attorney General’s Office, along with Gov. Earl Ray Tomblin’s DHHR and DMAPS.

All parties agreed to the settlement to avoid the delay, expense, inconvenience and uncertainty of protracted litigation.

Litigation involving two remaining defendants is subject to a confidentiality order in Boone Circuit Court.

The previous settlements include $2.5 million with Miami-Luken; $1,865,250 with Anda Inc.; $1 million with the Harvard Drug Group; $850,000 with Associated Pharmacies; $400,000 with J.M. Smith Corporation; $250,000 with KeySource Medical Inc.; $250,000 with Quest Pharmaceuticals; $200,000 with Top Rx; and $200,000 with Masters Pharmaceutical LLC.

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