MONTGOMERY, Ala. (WHNT) — The state of Alabama has reached settlements with three companies that manufacture and distribute pharmaceuticals for their role in exacerbating the opioid crisis in the state.
Alabama Attorney General Steve Marshall made the announcement Tuesday that between the three settlements Alabama would receive almost $276 million from Endo Pharmaceutical, Johnson & Johnson, and McKesson.
Attorney General Marshall remarked, “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.”
Endo Pharmaceutical will pay the state and its subdivisions a $25 million lump sum in 2022. Of those funds, the state will get $15 million minus attorneys’ fees and its litigating subdivisions will receive $10 million.
As part of their settlement, Johnson & Johnson will pay $70.3 million to Alabama and its subdivisions in one payment in 2022. Those funds will also be split 50/50.
The third settlement is from McKesson, a pharmaceutical distributor, who will pay the state and its subdivisions $141 million over nine years and the funds will be split 50/50.
Marshall said if Alabama had stayed part of the national lawsuits the state would have received less money and instead of being paid mostly in lump sums the funds would have been paid over several years
The state government’s share of each settlement will be deposited into Alabama’s General Fund as the legislature determines the best use for the money. Per the terms of the settlements, the money must be used to remediate the harms caused by opioids.
In addition to the funding for remediation, the state also recovered about $40 million in attorneys’ fees and costs for Alabama.
The state also has claims against manufacturers Purdue Pharma, Mallinkckrodt, and Insys in each of their respective bankruptcy cases.