Shares of Endo International (ENDP) were soaring 23.2% higher as of 11:15 a.m. EDT on Tuesday. The big jump came as investors anticipated that the company would reach a settlement with several Tennessee counties involved in an opioid-related lawsuit.
District Attorney General Barry Staubus told Tennessee News Channel 11 (WJHL) that Endo has extended an offer to settle the case. Jury selection was scheduled to begin in a few days. Officials in Greene, Sullivan, and Washington counties are expected to hold public meetings tomorrow to review the settlement offer.
No financial details of the settlement have been announced. Endo hasn't issued a public statement on the matter at the time of this writing. However, the company stated on July 15 that it was "exploring all of its legal options" in the case.
Investors are clearly optimistic, though, about the prospects of Endo avoiding a trial based on today's big gain for the pharmaceutical stock. The company is the only defendant in the litigation that hasn't filed for bankruptcy.
Even if Endo reaches a settlement with the Tennessee counties, the company's legal battles related to its opioid drugs are far from over. New York Attorney General Letitia James said today that three major drug distributors settled with the state of New York and two large counties in the state. However, a trial is still scheduled with Endo and two other drugmakers.