Alabama’s Attorney General announces settlements with opioid manufacturers, distributers
MONTGOMERY, Ala. (WAFF) - Attorney General Steve Marshall announced on Tuesday that Alabama reached settlements with two pharmaceutical manufacturers and one pharmaceutical distributor to resolve claims made by the State in regard to the opioid crisis in Alabama.
The settlements totaled $276 million and they were made with Endo Pharmaceutical, Johnson & Johnson and McKesson.
“These three settlement agreements affirm my decision to decline participation in the national opioid settlements, which did not adequately acknowledge the unique harm that Alabamians have endured and would have redirected millions of dollars to bigger states that experienced a less severe impact,” Marshall said in a statement.
The following is a breakdown of the settlements with the three companies:
- Endo Pharmaceutical: The State of Alabama and its subdivisions will receive $25 million this year in a lump-sum payment. By comparison, two similarly populated states and their subdivisions settled with Endo for 26% and 35% of the total that Alabama was able to secure. Pursuant to an agreement between the State and its litigating subdivisions, the State will receive $15 million, less attorneys’ fees, and its litigating subdivisions will receive $10 million.
- Johnson & Johnson: The State of Alabama and its subdivisions will receive $70.3 million this year in a lump-sum payment. While the State would have received this same amount in the national settlement, it would have been paid out over nine years. The settlement funds will be split 50/50 between the State and its subdivisions.
- McKesson: The State of Alabama and its subdivisions will receive $141 million over nine years. Under the national settlement, the State would have received only $115.8 million, paid out over eighteen years. The settlement funds will be split 50/50 between the State and its subdivisions.
(State of Alabama)
The Alabama Legislature will be able to review work done by the Alabama Opioid Overdose and Addiction Council to determine the state’s greatest needs.
The State also recovered $40 million in attorneys’ fees and costs for the State. The State does have remaining claims against Purdue Pharma, Mallinckrodt and Insys.
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