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Wednesday, April 7, 2021

Endo eyes review of Staubus judgment

 Endo International plc (NASDAQ: ENDP) today announced the entry of an order granting a default judgment on liability against its wholly-owned subsidiaries Endo Health Solutions Inc. (EHSI) and Endo Pharmaceuticals Inc. (EPI) in Staubus, et al. v. Purdue Pharma, L.P., et al., Case No. C-41916, which has been pending in the Circuit Court for Sullivan County at Kingsport, Tennessee since 2017.

The Staubus case involves allegations by three Tennessee District Attorneys General and an individual plaintiff that EHSI's and EPI's sale of prescription opioid medications violated Tennessee's Drug Dealer Liability Act (DDLA). In December 2020, the Tennessee Supreme Court unanimously ruled that Tennessee's District Attorneys General do not have standing to bring claims under the DDLA. On April 5, 2021, the Staubus court permitted several Tennessee counties to substitute into the case in place of the District Attorney General plaintiffs. The next day, on April 6, 2021, the Staubus court entered a default judgment against Endo on liability as a sanction for alleged discovery improprieties. The order does not address the issue of damages, which the Staubus court ordered to be tried at a future date.

Endo takes its discovery obligations seriously and has made extraordinary efforts to address the Staubus court's concerns, including by hiring an additional law firm, producing hundreds of thousands of additional documents and offering additional depositions at Endo's expense. Endo strongly disagrees with the Staubus court's orders, which it believes are procedurally, factually, and legally deficient. The Company will seek review of the Staubus court's orders by the Tennessee appellate courts.

https://finance.yahoo.com/news/endo-comments-entry-default-liability-131800277.html

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