Tribes Make $590M Opioid Deal With Johnson & Johnson, Distributors

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Native American Tribes Opioid Settlement Overview:

• Who: Native American tribes have agreed to a deal worth nearly $590 million with Johnson & Johnson and major opioid distributors.
• Why: The settlement resolves claims over the companies’ alleged role in exacerbating the opioid crisis.
• Where: The proposed settlement was filed in an Ohio federal court.

Native American tribes, disproportionately affected by the opioid epidemic, have agreed to a $590 million settlement with Johnson & Johnson and major opioid distributors to resolve claims over their roles in exacerbating the crisis. 

In a proposed settlement filed Feb. 1 in an Ohio federal court, Johnson & Johnson has agreed to pay all federally recognized tribes $150 million over two years. 

Meanwhile, AmerisourceBergen Corp., Cardinal Health Inc. and McKesson Corp. have agreed to pay $440 million over seven years, according to a statement filed Tuesday by the committee handling tribes’ claims in the opioids Multidistrict Litigation (MDL). 

The majority of the settlement funds will go to drug treatment and related programs provided by tribes and tribal health care organizations, which are also involved in the MDL, the filing states. 

Roughly 15% of the total will go toward legal fees and other litigation costs.

All Federally Recognized Tribes Eligible To Participate In Settlement

The new settlement does not include a $75 million deal already reached in September by the Cherokee Nation with the distributors in the tribe’s bellwether suit.

In that case, the Cherokee Nation claimed opioid makers and distributors along with pharmacies contributed to the opioid epidemic by misleading the public about the dangers of opioids and failing to take measures to prevent the illegal sale of opioids.

More than 400 of the 574 federally recognized tribes have brought claims in the MDL in Ohio federal court, but all tribes will be eligible to participate in the new settlements if they choose to, according to court filings.

Late last month, a majority of local governments nationwide opted to participate in a $26 billion settlement with Johnson & Johnson, subsidiary Janssen Pharmaceuticals and the same distributors. The tribes have pursued a resolution of their claims separately. 

Native Americans have endured disproportionately high opioid-related overdose deaths, the New York Times reports. 

According to one study, pregnant American Indian women were as much as 8.7 times more likely than pregnant women from other demographic groups to be diagnosed with opioid dependency or abuse.

Johnson & Johnson and Janssen confirmed the deal in a statement Tuesday, saying it was “consistent with the framework of the previously announced nationwide opioid settlement agreement,” Law 360 reports.

The companies did not admit any liability in the agreement.

What do you think of this settlement for the tribes? Let us know in the comments!

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