Executive Summary of National Opioid Settlements

[5.06.2024. Subject to ongoing corrections and updates]

In 2021, nationwide settlements were reached to resolve opioids litigation against the three largest pharmaceutical distributors (McKesson, Cardinal Health, and AmerisourceBergen) and manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson. These settlements, totaling up to $26 billion, have been finalized, and payments have begun. In late 2022, additional agreements were announced with CVS, Walgreens, Walmart, Allergan, and Teva, which have also been finalized. These 2022 settlements could provide up to $18.52 billion, assuming maximum participation. At least 85% of the funds from both settlements must be used for opioid epidemic abatement.

The settlements also impose business conduct changes on the defendants, such as creating a clearinghouse for distributors to monitor opioid shipments, and restrictions on marketing and lobbying by J&J, Teva, and Allergan. Pharmacy chains CVS, Walgreens, and Walmart must implement compliance and monitoring changes. These agreements are the result of extensive negotiations involving State Attorneys General, the Plaintiffs’ Executive and Negotiation Committees, and the Settling Defendants, facilitated by Judge Dan Polster and neutral mediators. Agreements with other defendants, including Kroger and Hikma, are also progressing but do not cover claims by Tribes or private parties.