BOE votes to retain legal representatives in opioid lawsuit, become plaintiff
Jan. 10—KINGWOOD — Members of the Preston County Board of Education voted unanimously to retain Bailey and Glasser LLP to represent Preston County Schools in the opioid class action lawsuit, to become a plaintiff in the national prescription opiate consultant litigation, and to opt out of the current settlement offered by McKinsey and Co. Inc.
The decision was made during a special meeting held earlier this month.
According to a memorandum from Bailey & Glasser to the West Virginia County School Superintendents, the settlement pending in the McKinsey case involves a class action settlement for subdivisions such as counties and cities for $207 million and one for $23 million for school boards nationwide.
Ben Bailey, of Bailey & Glasser, said McKinsey & Co., who denies the claims against it, was the architect of a scheme to turbocharge opioid sales, advertising multiple manufacturers and other industry participants, for well over a decade, about how to deceptively sell as many opioids as possible. He said this has caused school districts to have to spend or divert already scarce resources to support student victims of the opioid crisis.
Bailey said he suggested schools opt to make a statement that the amount is not enough to really make a difference for West Virginia school boards. He said McKinsey will then have to decide whether to negotiate further with those boards that opt-out to resolve the claims against it.
If McKinsey decides to negotiate with the school boards, Bailey said they will have a chance to get more funds for the school board grant-making settlement trust, which would be available to West Virginia counties that apply for and receive grants. If McKinsey declines to negotiate, but goes forward with the settlement, the $23, 000, 000 will still be in trust—along with other settlements with other defendants. While those who opt out won't have a claim to the $23, 000, 000, the counties will still be eligible to apply for grants from the other monies, which currently total $33.5 million and await other judicial action, and should grow.
According to the settlement notice, once a school district opts out of the settlement, that district will not be eligible to apply for grants from the Public School District Opioid Recovery Trust under the settlement. But, this preserves school districts' right to sue McKinsey over the claims being resolved by the settlement.
During the meeting he told board members there were several factors to consider about the settlement, among which, if no one opts out of the settlement, it will be concluded on its existing terms. If a number of boards opt out McKinsey will have the option not to go forward with the settlement and continue with the lawsuits, making it risky for all parties.