Tennessee Court Of Appeals Denies Endo's Request For Stay Of Trial Court Proceedings

Endo International plc (ENDP) said Thursday that on July 13, 2021, the Tennessee Supreme Court denied Endo's requests for discretionary review of trial court's default judgment order and the trial court's separate order permitting the substitution of new plaintiffs in the case.

The Tennessee Court of Appeals Thursday declined to hear Endo's appeal as of right from the default judgment order, stating in its ruling that the default judgment order cannot presently be appealed because it is not a final judgment. Separately, the Tennessee Court of Appeals denied Endo's renewed request for a stay of the trial court proceedings.

Endo continues to believe that the trial court's default judgment order is meritless and is exploring all of its legal options.

As originally filed in the Circuit Court for Sullivan County, Tennessee, the Staubus case involved allegations by three Tennessee District Attorneys General and an individual plaintiff that Endo's sale of prescription opioid medications violated Tennessee's Drug Dealer Liability Act or DDLA.

In December 2020, the Tennessee Supreme Court unanimously ruled that Tennessee's District Attorneys General lack standing to bring claims under the DDLA.

On April 5, 2021, the trial court permitted seven Tennessee counties to substitute into the case in place of the District Attorney General plaintiffs, and two additional counties and eighteen municipalities have subsequently joined the lawsuit.

On April 6, 2021, the trial court entered a default judgment against Endo on liability as a sanction for alleged discovery improprieties. That order did not award any damages to the plaintiffs. The trial court has scheduled a trial on damages to begin on July 26, 2021.

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