90% of US Cities, Counties Agree to Join $26B Opioid Settlement by Deadline

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Opioid Crisis Settlement Overview: 

• Who: About 90% of local governments nationwide have signed on to a $26 billion settlement being paid out by Johnson & Johnson and the nation’s three largest opioid distributors. 
• Why: Opioid distributors, along with J&J, have been accused of exacerbating the nationwide opioid epidemic.
• Where: The opioid settlement was open for states to sign on to nationwide by a Jan. 26 deadline

An “unprecedented” number of local governments nationwide have opted to participate in a $26 billion settlement resolving lawsuits alleging pharmaceutical company Johnson & Johnson and three large drug distributors fueled the U.S. opioid epidemic, lawyers announced Jan. 26. 

The deadline to opt in to the settlement was Jan. 26, and about 90% of the local governments nationwide that were eligible to participate had indicated they would do so, said Peter Mougey, a lawyer for plaintiffs involved in the negotiations, Reuters reports.

The settlement is between the local governments, drug company Johnson & Johnson and distributors McKesson Corp, AmerisourceBergen Corp and Cardinal Health Inc.

Lawyers said the widespread interest in participating in the settlement increased the odds that it will move forward.

“To get 6,000 cities and counties to agree on anything at the 90% level in 90 days is unprecedented,” Mougey said. “It demonstrates the strength and power of this settlement.”

Funds allocated to the states in the multistate agreement are meant to be used toward fighting the opioid epidemic, which the opioid distributors have been accused of exacerbating.

Distributors To Pay $21B With J&J To Contribute About $5B

The settlement, which will end the majority of complaints lodged, has the distributors set to pay $21 billion of the funds over the next 18 years with Johnson & Johnson contributing around $5 billion. 

How much the companies ultimately pay depends on state and local government participation. 

On Jan. 11, Nevada and Georgia joined the $26 billion opioid settlement, coming away with almost $300 million and $636 million in funds, respectively. 

Not involved in the settlement but facing challenges of its own is Purdue Pharma, which had its bankruptcy confirmation order overturned by a New York federal judge in December, The New York Times reports. 

Purdue Pharma’s bankruptcy plan had previously been approved in September of last year. The company filed for bankruptcy in 2019 as it and its billionaire owners, the Sackler family, faced roughly 3,000 lawsuits pertaining to its role in helping fuel the opioid crisis.

The bankruptcy plan had protected the company and the Sackler family from class action complaints pointing to its manufacturing of OxyContin. 

Were you or a loved one affected by the nationwide opioid epidemic allegedly exacerbated by the country’s largest opioid distributors? Let us know in the comments!

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