CHARLESTON, W.Va. (AP) — A federal appeals court on Tuesday overturned a landmark decision in West Virginia that had rejected attempts by an opioid-ravaged area to be compensated by U.S. drug distributors for a influx of prescription pain pills into the region.
The 4th U.S. Circuit Court of Appeals in Richmond, Virginia, ruled that a lower court judge erred when he said West Virginia's public nuisance law did not apply to the lawsuit involving the distribution of opioids.
“West Virginia law permits abatement of a public nuisance to include a requirement that a defendant pay money to fund efforts to eliminate the resulting harm to the public,” the 4th Circuit wrote. “West Virginia has long characterized abatement as an equitable remedy.”
The ruling sends the case back to U.S. District Court in Charleston for “further proceedings consistent with the principles expressed in this opinion.”
Thousands of state and local governments have sued over the toll of opioids. The suits relied heavily on claims that the companies created a public nuisance by failing to monitor where the powerful prescriptions were ending up. Most of the lawsuits were settled as part of a series of nationwide deals that could be worth more than $50 billion. But there wasn’t a decisive trend in the outcomes of those that have gone to trial.
In July 2022, U.S. District Judge David Faber ruled in favor of three major U.S. drug distributors who were accused by Cabell County and the city of Huntington of causing a public health crisis by distributing 81 million pills over eight years in the county. AmerisourceBergen Drug Co., Cardinal Health Inc. and McKesson Corp. also were accused of ignoring the signs that Cabell County was being ravaged by addiction.
Faber said West Virginia’s Supreme Court had only applied public nuisance law in the context of conduct that interferes with public property or resources. He said to extend the law to cover the marketing and sale of opioids “is inconsistent with the history and traditional notions of nuisance.”
Last year the federal appeals court sent a certified question to the state Supreme Court, which states: “Under West Virginia’s common law, can conditions caused by the distribution of a controlled substance constitute a public nuisance and, if so, what are the elements of such a public nuisance claim?”
The state justices declined to answer. That 3-2 opinion in May returned the case to the federal appears court.
“We hold that West Virginia’s highest court would not exclude as a matter of law any common law claim for public nuisance caused by the distribution of a controlled substance,” the 4th Circuit wrote Tuesday. “Therefore, we necessarily conclude that the district court erred when it held that a public nuisance claim based on the distribution of opioids was per se legally insufficient under West Virginia law.”
During arguments earlier this year before the state Supreme Court over the certified question, Steve Ruby, an attorney for the companies, called “radical” the plaintiffs’ arguments to extend the public nuisance law to opioid manufacturers. If allowed, he said, that would “create an avalanche of activist litigation.”
The appeals court previously noted that the West Virginia Mass Litigation Panel, which works to resolve complex cases in state court, has concluded in several instances that opioid distribution “can form the basis of a public nuisance claim under West Virginia common law.”
In his 2022 decision, Faber also said the plaintiffs offered no evidence that the defendants distributed controlled substances to any entity that didn’t hold a proper registration from the U.S. Drug Enforcement Administration or the state Board of Pharmacy. The defendants also had suspicious monitoring systems in place as required by the Controlled Substances Act, he said.
But the 4th Circuit Court found Tuesday that the lower court “misconstrued the distributors’ duties” under the Controlled Substances Act.
The plaintiffs had sought more than $2.5 billion that would have gone toward opioid use prevention, treatment and education over 15 years.
In 2021 in Cabell County, an Ohio River county of 93,000 residents, there were 1,059 emergency responses to suspected overdoses — significantly higher than each of the previous three years — with at least 162 deaths.
FILE - Signs are displayed at a tent during a health event June 26, 2021, in Charleston, W.Va. (AP Photo/John Raby, File)
NEW YORK (AP) — Stocks are rushing higher worldwide, and oil prices are easing Wednesday as hopes build that the war with Iran could end soon. That's even though some of the signals investors saw as hopeful are already under dispute, and several prior bouts of optimism in financial markets quickly got undercut by continued, fierce fighting in the war.
The S&P 500 rose 0.8% and added to its leap from the day before, which was its best since last spring. That followed even bigger gains for stock markets across Europe and Asia, including an 8.4% surge in South Korea, which were catching up to Wall Street’s rally from Tuesday.
The Dow Jones Industrial Average was up 357 points, or 0.8%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 1.2% higher.
Oil prices also fell back toward $100 per barrel after President Donald Trump claimed shortly before Wall Street began trading that Iran “has just asked the United States of America for a CEASEFIRE!”
“We will consider when Hormuz Strait is open, free, and clear. Until then, we are blasting Iran into oblivion or, as they say, back to the Stone Ages!!!”
Trump had also said the night before that the U.S. military could end its offensive in two to three weeks. That added to optimism following a couple tenuous signals of hope from earlier Tuesday that Wall Street latched onto, including a news report quoting Iran’s president as saying that it has “the necessary will to end the war” as long as certain requirements are met, including “guarantees to prevent a recurrence of aggression.”
The worry on Wall Street has been that the war may last a long time and keep oil and natural gas from the Persian Gulf out of global markets, which could create a brutal blast of inflation.
But hope has been quick to reverse to doubt on Wall Street, triggering manic swings back and forth for financial markets since the war with Iran began. Trump has also made statements that lifted markets, only to see the gains quickly disappear after increasing his military threats against Iran. Investors say Trump’s statements are becoming less impactful for financial markets.
Iran’s Foreign Ministry spokesman, Esmail Baghaei, called Trump’s claim about asking for a ceasefire “false and baseless,” according to a report on Iranian state television.
And oil prices remain high, even if they’ve eased so far this week. The price for a barrel of Brent crude oil, the international standard, was sitting at $101.83 following its declines, which is still up from roughly $70 before the war began.
U.S. gasoline prices rose again overnight to a national average of $4.06 per gallon, according to the auto club AAA.
Iran, meanwhile, hit an oil tanker off the coast of Qatar and Kuwait’s airport on Wednesday while airstrikes battered Tehran as the fighting continued. Iran also continues to hold a grip on the Strait of Hormuz, where a fifth of the world’s traded oil passes during peacetime.
“De-escalation hopes have given markets a lift, but we think the effects of the war would, in many cases, persist even if the war did end soon,” Thomas Mathews, head of markets, Asia Pacific at Capital Economics, said in a research note Wednesday.
“It’s worth thinking through how markets might fare if the war were to end ‘very soon,’” he wrote. “Do markets have further to recover if sentiment continues to improve? The answer is almost certainly yes.”
The White House said Trump will deliver a public address Wednesday evening on the Iran war.
On Wall Street, the majority of stocks rose, with Big Tech powering the move higher. Gains of 2.5% for Alphabet and 1% for Nvidia were two of the strongest forces lifting the S&P 500.
They helped offset a 14.3% drop for Nike, which fell even though it reported a stronger profit for the latest quarter than expected. Analysts said it gave some lackluster financial forecasts.
Hasbro fell 3.8% after the toy company found someone had gained unauthorized access to its computer network and is working to assess the full impact.
In stock markets abroad, indexes leaped more than 1.5% in France, Germany and the United Kingdom. Asian markets had even bigger gains.
Tokyo’s Nikkei 225 jumped 5.2% after a survey by Japan’s central bank showed business sentiment for major Japanese manufacturers improved despite worries about the Iran war.
In the bond market, Treasury yields held relatively steady after a report said U.S. retailers made more money in February than economists expected. A separate report said U.S. manufacturing growth last month was slightly faster than economists expected.
The 10-year Treasury yield rose to 4.31% from 4.30% late Tuesday.
AP Business Writers Chan Ho-him and Matt Ott contributed.
James Conti works on the floor at the New York Stock Exchange in New York, Tuesday, March 31, 2026. (AP Photo/Seth Wenig)
Philip Finale works on the floor at the New York Stock Exchange in New York, Tuesday, March 31, 2026. (AP Photo/Seth Wenig)
Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Ahn Young-joon)
Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top center left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Ahn Young-joon)
Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Ahn Young-joon)
A currency trader reacts near a screen showing the Korea Composite Stock Price Index (KOSPI), right, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 1, 2026. (AP Photo/Ahn Young-joon)
A screen displays financial information on the floor at the New York Stock Exchange in New York, Tuesday, March 31, 2026. (AP Photo/Seth Wenig)
