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National opioid settlement funds overview:
- Who: States and local political subdivisions are working together to end the opioid epidemic following national opioid settlements.
- Why: States are in the process of developing strategies to allocate and/or use the funds made available to them by the national opioid settlements.
- Where: Opioid settlements have been made with states nationwide.
National opioid settlements have been made as part of an effort by states and local political subdivisions to resolve the nationwide opioid crisis.
The settlements have put to bed claims brought against McKesson, Cardinal Health and AmerisourceBergen — the nation’s three largest pharmaceutical distributors.
Claims against drug manufacturer Janssen Pharmaceuticals and its parent company Johnson & Johnson were also resolved as part of the national opioid settlement.
The settlements provide “substantial funds” to both states and subdivisions as a way to help abate the nationwide opioid epidemic and create change in the way drug manufacturers and distributors conduct business.
Pharmaceutical distributors must pay up to $21 billion over the next 18 years while J&J is required to pay as much as $5 billion over “no more than nine years,” according to the official national opioid settlement website.
Around $22.8 billion of the settlement funds will go toward state and local subdivisions while at least 85% of all the funds going to the states will be required to be used to reduce the opioid epidemic.
Drug distributors were required to make an initial deposit of settlement funds into escrow by no later than the end of September of last year while more payments were made by J&J and distributors this summer.
Opioid settlement funds distributed differently state by state
The decision on how settlement funds will be used varies by state to state with some opting to distribute the cash to participating state and local governments working to end the opioid epidemic.
Arizona, for example, adopted what it is calling the One Arizona Distribution of Opioid Settlement Funds Agreement to “establish binding terms” for the distribution of the settlement funds with participants.
“The State and the Participating Local Governments share a common desire to abate and alleviate the impacts of the Pharmaceutical Supply Chain Participants’ misconduct throughout the State of Arizona,” states a document explaining the states’ fund distribution agreement.
Additional states with allocation agreements include Virginia, Idaho, Illinois and New Mexico, among others.
State, local governments adopt memorandum of understanding
Other states, such as Arkansas, chose to enter into a memorandum of understanding between their state, counties and cities in an effort to “establish a proposed framework for funding programs at a state-wide, regional and local levels.”
Arkansas’ memorandum of understanding explains how both state and city officials “share a common desire” to put an end to the opioid crisis.
Additional states that have adopted a memorandum of understanding on how to distribute settlement funds include Colorado, Florida, Georgia, Iowa, Kansas and Maine, among others.
States pass legislation in wake of national opioid settlements
States have also proposed legislation in the wake of the national opioid settlements meant to help end the opioid epidemic.
Georgia, for example, passed a bill designed to help the state combat the opioid epidemic by granting more funding for prevention and treatment, along with additional resources being made available to law enforcement agencies.
The legislation will also help ensure that the state receives funds promised to them in an opioid related settlement.
“It is imperative that the state receive the full amount of any opioid settlement, and in order to do so, the state must be able to release claims for all state and local public bodies and instrumentalities in the state,” Georgia says in a court document.
Additional states that have passed new legislation in the wake of the national opioid settlements are Illinois, Indiana, Kansas, Kentucky and Louisiana, among others.
Opioid distributors agree to terms in class action settlements
In May, Native American tribes agreed to a settlement worth almost $590 million with J&J and other major opioid distributors they accused of exacerbating an opioid epidemic in their communities.
Last September, meanwhile, a U.S. bankruptcy judge said he planned to approve a bankruptcy plan made by Purdue Pharma in the face of a number of class action lawsuits accusing it of bearing responsibility for the opioid epidemic.
By approving Purdue Pharma’s bankruptcy plan, the judge protected the pharmaceutical company from facing ongoing and future opioid-related class action lawsuits.
In October 2020, Purdue Pharma previously agreed to plead guilty to criminal charges stemming from its marketing and distribution of the painkiller Oxycontin as part of a settlement agreement worth more than $8 billion.
Have you been affected by the nationwide opioid epidemic? Let us know in the comments!
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90 thoughts onNational opioid settlement funds to be used for remediation efforts
Add me please
12 years of increased opioid use overseen by specialist with continued and increased pain. Physically addicted, has taken my job and family. Hope some money was set aside to develop a non addictive Med that works.
I filed a claim for my sister who died on the street from opioid addiction. And, I filed a claim for me as a victim as I was married for 34 years to an opioid addict who abused me in every way possible. Was it a waste of time??? Are any of the victims of opioid abusers who filed claims going to receive any compensation for the companies and physicians who kept enabling the abusers to use their products???
My mother had breast cancer at 38 she had got pain meds for years and ended up becoming addicted to pain medication . Could I make a claim for my mother she passed
My mom took it n she passed away from it n also other medication that the doctors provided. Her body was so used to taking the medication that it wasn’t helping anymore till the point that they recommended her much more stronger medication
I was a police officer and got hurt on the job. I had knee surgery and was given pain medication and I got addicted. I lost my job, my home,car and ended up in jail. I definitely was affected by pain medication.
I’m involved in suit against Purdue pharma. I had to file in 2019 but I am not sure if this is going to citizens or agencies but I am interested in finding out about this. I’ve been on methadone cause of this opioid epidemic from an injury and car accident in 2007 .
I’m also part of thatde lawsuit
20 yrs I have been on opiates ,oxygen contin,morphine, roxies,15mg 30mg,.opana 30mg n 10s.im on suboxinenow have been for 4yrs now .ty add me
add me
Add me please, I was addicted to pain pills from having knee surgery and I was only 22 yrs old at that time. I’m almost 50 now and have so much pain and I’m on Suboxone so I am still getting help with my addiction still. I don’t think how these companies and the gov. Play games and leave the people who were actually affected from these drugs.
I had several knee surgeries, and was prescribed oxy, I had no idea it was addictive- I was yong and believed my Dr. Took as prescribed.
I have been on Suboxone for 12 years
If I would have been warned I would never be in this situation
I was prescribed these medications between 2010 and 2016 for a back pain issue. I subsequently had to look to the street to get my pain under control. I was addicted to heroin an fentanyl as a result and it has ruined my life. How do I get access to monies as a result of these class action suits to help make me whole again ?