J&J, distributors finalize $26B landmark opioid settlement

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J&J, distributors finalize $26B landmark opioid settlement
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Drugmaker Johnson & Johnson and three major distributors have finalized a nationwide settlement over their role in the opioid addiction crisis

Keith Lewis disposes of used syringes at a needle exchange run by Camden Area Health Education Center in Camden, N.J., Thursday, Feb. 24, 2022. Four companies involved in the opioid industry are finalizing settlements over the addiction crisis in the U.S. in deals that could total $26 billion over 18 years. CAMDEN, N.J.

“We’re never going to have enough money to immediately cure this problem,” said Joe Rice, one of the lead lawyers who represented local governments in the litigation that led to the settlement. “What we're trying to do is give a lot of small communities a chance to try to change some of their problems.”

Dan Keashen, a spokesman for Camden County government, said officials are thinking about using settlement money for a public education campaign to warn about the dangers of fentanyl. They also want to send more drug counselors into the streets, put additional social workers in municipal courts and pay for anti-addiction medications in the county jail.California Gov.

New Brunswick, New Jersey-based Johnson & Johnson has nine years to pay its $5 billion share. The distributors — Conshohocken, Pennsylvania-based AmerisourceBergen; Columbus, Ohio-based Cardinal Health; and Irving, Texas-based McKesson — agreed to pay their combined $21 billion over 18 years. To reach the maximum amounts, states have to get local governments to sign on.

The amount sent to each state under the opioid settlement depends on a formula that takes into account the severity of the crisis and the population. County and local governments also get shares of the money. A handful of states — Alabama, New Hampshire, Oklahoma, Washington and West Virginia — have not joined all or part of the settlement, mostly because they have their own deals or are preparing for trial.

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