End Substance Use Disorder Responds to Proposed $26 Billion Opioid Settlement

Today, a coalition of state attorneys general announced a $26 billion national settlement proposal with four companies accused of fueling the overdose crisis. End Substance Use Disorder released the following statement:

“Today’s proposed settlement is cold comfort for the more than half a million families who have lost a loved one to an overdose since the start of this crisis,” said Erin Schanning, president End Substance Use Disorder. “These corporations placed profits over lives. They have not admitted to wrongdoing nor have they shown any remorse for their role in destroying families and communities across the country. While these corporations enrich themselves on rising stock prices, families across the country continue to mourn.”

The settlement proposal was reached with drug maker, Johnson & Johnson, and the three largest U.S. drug distributors: AmerisourceBergen, Cardinal Health, and McKesson. The companies have been accused of downplaying the addiction risk of opioids in their marketing materials and flooding local communities with opioids. More than 3,000 lawsuits have been filed, mainly by state and local governments.

The settlement could total up to $26 billion paid out over 18 years, depending on how many states and local governments sign on to the agreement. The settlement proposal also calls for the drug distributors to create a shared clearinghouse on drug shipments to encourage self regulation. States have 30 days to approve the agreement and local governments have 120 days. Each company will decide whether enough governments have agreed to proceed.

The funds from the settlement proposal will be required to be used to address the crisis. End Substance Use Disorder has joined with leading organizations to endorse a set of guiding principles for how states, cities, and counties should use funds received from the opioid litigation. More than 23 million Americans are currently suffering from substance use disorder, and it is vital that the funds from this settlement go towards for prevention, treatment, and recovery supports that are firmly rooted in evidence.

The proposed $26 billion settlement is the second largest cash settlement in U.S. history behind the $246 billion tobacco settlement reached in 1998. It comes a week after 15 states announced a $4.5 billion settlement agreement with Purdue Pharma, the maker of Oxycontin.