Endo Pharmaceuticals agreed to settle more than 1,300 lawsuits over its testosterone replacement drug from a $200 million fund it set aside last year. The drugmaker announced a master settlement agreement that will resolve all current cases involving the drug, Testim, including multidistrict litigation involving about 900 lawsuits.
Plaintiffs accused the company of irresponsibly marketing the drugs and ignoring potential safety risks. Last year, Endo won its first bellwether liability case involving the drug, filed by a man who blamed it for his heart attack. Following this victory, Endo and other plaintiffs in the MDL entered a memorandum of understanding and the court stayed proceedings to allow tie for a negotiated settlement.
In its most recent SEC quarterly filing, Endo said it believes it has correctly estimated the total liability cost it faces, but the litigation could ultimately carry a bigger price tag than $200 million. The company did not admit any wrongdoing in the agreement.