Johnson & Johnson Reaches $44M Opioid Settlement with New Mexico

J&J New Mexico Opioid Settlement Overview:

• Why: New Mexico initially refused to join the nationwide settlement because of concerns that the deal did not do enough to address the opioid crisis in the state.
• Who: Johnson & Johnson has agreed to pay New Mexico $44 million as part of a nationwide opioid crisis settlement.
• Where: The opioid settlement funds will be distributed in New Mexico.

Johnson & Johnson has reportedly agreed to pay New Mexico $44 million to settle allegations it exacerbated the effects of the opioid epidemic in the state.

The settlement with New Mexico is part of a $26 billion settlement announced last summer that will put an end to most opioid crisis lawsuits that were filed in the United States. AmerisourceBergen Corp., Cardinal Health Inc. and McKesson Corp. are also involved in the nationwide opioid crisis settlement.

Under the terms of the nationwide opioid settlement, J&J will pay $5 billion over the next nine years. The distributors will pay $21 billion over the next 18 years. J&J also agreed to stop selling opioids. Up to $25 billion from the nationwide opioid settlement will be used to address the opioid crisis.

In reaching the opioid crisis settlement, J&J did not admit any wrongdoing or liability. J&J maintains that it has properly marketed its painkillers.

Nationwide Opioid Settlement Was Not Adequate, New Mexico Argued

New Mexico initially declined to join the nationwide opioid crisis settlement over concerns the deal did not provide sufficient results. Five other states also opted out of the deal but continued to negotiate with J&J and the distributors.

“Opioids have destroyed families in New Mexico, and local communities and addiction professionals still need vital funding to save lives and fight this ongoing tragic epidemic,” New Mexico Attorney General Hector Balderas said in a statement. 

The New Mexico opioid settlement requires J&J to pay the state its share of the nationwide settlement this year instead of over several years. All of the other states’ local governments must sign the deal by May 31 for this distribution to take effect.

More than 3,300 opioid crisis lawsuits have been filed as an effort to hold companies responsible for their contribution to hundreds of thousands of opioid overdose deaths in two decades

The deadline for cities and counties in states that are part of the nationwide opioid settlement have until Jan. 26 to opt in to the deal.

Do you think the J&J settlement with New Mexico will do enough to address the opioid crisis in the state? Tell us your thoughts in the comments below.

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