Alabama reaches $276M settlement in opioid cases

Alabama reached a $276 million settlement agreement with Johnson & Johnson, McKesson and Endo Pharmaceutical for their role in the opioid epidemic, the state’s attorney general announced on Tuesday.

Under the agreement, Johnson & Johnson will pay $70.3 million to the state this year, while McKesson will pay out $141 million over nine years. Endo will pay $25 million this year. A settlement agreement does not mean an admission of guilt.

Alabama Attorney General Steve Marshall said the settlement agreement gives Alabama a boost of funds to support communities affected by the epidemic.

“Having encountered the utter darkness of the opioid crisis at my own doorstep, this is one of my most meaningful accomplishments as your Attorney General,” he said in a statement.

The news comes a day after West Virginia reached a $99 million settlement agreement with Johnson & Johnson.

Both Alabama and West Virginia opted out of the historic $26 billion national settlement with Johnson & Johnson, AmerisourceBergen, Cardinal Health and McKesson, choosing to pursue lawsuits against the companies individually.

Had Alabama joined the national settlement agreement, the state would have received $115.8 million from McKesson over 18 years instead of the $141 million over nine years. Alabama also would have received the same payment from Johnson & Johnson but over nine years.

Marshall said pursuing individual claims gave Alabama larger payouts in a timelier fashion by avoiding litigation in the larger national settlement, which involves thousands of communities.

“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.

Alabama still has ongoing litigation against Purdue Pharma, Mallinckrodt and Insys.