OpioidSettlementTracker.com’s official sum of settlements reached between U.S. state and local governments and the 16 major pharmaceutical opioid manufacturers, marketers, distributors, and retailers:

$49.7 billion (total reported value, excluding Purdue)

To see how these monies are being spent…

Last updated December 15, 2024.

• McKinsey as of December 2024: “Justice Department Announces Resolution of Criminal and Civil Investigations into McKinsey & Company’s Work with Purdue Pharma L.P.; Former McKinsey Senior Partner Charged with Obstruction of Justice” (U.S. DOJ)

  • As of October 2024: “McKinsey close to settling US opioid investigations, sources say” (Reuters), “McKinsey to Pay at Least $500 Million in DOJ Opioid Probe“ (Bloomberg)

  • As of April 2024: “McKinsey Under Criminal Investigation Over Opioid-Related Consulting,” “Ex-McKinsey Consultant Says Firm Misled Congress on Handling of Opioid Documents” (WSJ)

  • Other 2024 — “$230M Opioid Settlement With Cities, Schools Approved“ (Bloomberg), “$78M Opioid Deal With Health Plans Hits Snag“ (Law 360)

  • 2023 — “Consulting firm McKinsey to pay $230 million in latest US opioid settlements” (Reuters), “McKinsey to pay $78 million in US opioid settlement with health plans” (Reuters)

    • “The money is on top of $641.5 million that McKinsey already paid to resolve claims by state attorneys-general. McKinsey will pay $207 million to resolve claims by counties and municipalities, and another $23 million to resolve claims by public school districts.” Id.

    • States’ AGs’ individual payment sums under McKinsey’s opioid settlement are here.

  • See also “About McKinsey’s past work for opioid manufacturers” (McKinsey), “School Districts Are Poised For a $23 Million Payout in New Opioid Settlement” (EducationWeek)

• Cardinal Health as of December 2024: “AG: Pharmaceutical company now profits off Arizona opioid crisis settlement“ (AZFamily)

  • “According to state records, the company has paid more than $11 million so far and received $33 million in opioid settlement money through a state contract to treat prisoners for hepatitis C.” Id.

  • Ed. note: This is why Warren Buffet refers to our healthcare industry as a “tapeworm.”

• Keep an eye on this: “U.S. Lawmakers Push DOJ to Investigate [pharmacy-benefit managers] and Opioids” (Barron’s)

• Purdue as of November 2024: “BC law that lets province file opioids class action with other governments constitutional, SCC rules” (Canadian Broadcasting Corporation)

  • “In a statement on Friday, BC Attorney General Niki Sharma said, ‘Today marks a significant victory in our fight against the opioid manufacturers and distributors as BC can now proceed on behalf of the federal, provincial and territorial governments to recover the cost of treating opioid-related disease allegedly caused by the industry’s wrongful conduct following the Supreme Court of Canada ruling.’”

  • Other news — 

    • As of October 2024: “Purdue Nearing Broad Settlement With Sacklers, Mediator Says” (10/31), “Purdue Pharma Seeks More Time for Settlement Talks With Sacklers“ (10/22) (both Bloomberg Law)

    • As of September 2024: “Purdue Settlement Talks With Sacklers Extended to November” (Bloomberg), “In the U.S., opioid-maker Purdue is bankrupt. Its global counterparts make millions“ (The Washington Post), “Purdue Pharma gets extension for Sackler settlement talks” (Reuters)

    • As of July 2024: “The threat of litigation looms as Purdue Pharma returns to settlement talks” (Associated Press), “Billionaire Sackler Family Members Could Face Fresh Lawsuits After Purdue Opioid Settlement Falls Apart” (Forbes)

  • The S. Ct. opinion itself — “June 27, 2024”

    • “Held: The bankruptcy code does not authorize a release and injunction that, as part of a plan of reorganization under Chapter 11, effectively seek to discharge claims against a nondebtor without the consent of affected claimants.” Id.

  • Best short and sweet explainer — “SCOTUS Upends Purdue Pharma Opioid Settlement” (KFF)

  • Best longer-form coverage — “Supreme Court Rejects Liability Shield at Center of Purdue Pharma Settlement” (NYT)

  • My timeline of the Purdue saga — here (and below)an interesting read: “Confidential Files Detail PBMs’ Backroom Negotiations—and Their Role in the Opioid Crisis“ (Barron’s)

• Walmart as of November 2024: “Walmart Class Attys In $123M Opioid Deal Seek $24.6M Fee“ (Law360)

  • As of October 2024: “Walmart reaches settlement deal for shareholder lawsuits over its handling of opioids” (AP)

  • As of March 2024: “Walmart Gets Partial Win in Opioid Crisis Suit Brought by US” (Bloomberg Law)

• Baltimore as of November 2024: jury verdict against McKesson and AmerisourceBergen + “more than $266 million in damages”

• attorneys’ fees as of September 2024: “Opioid plaintiffs' committee urges US appeals court to toss fee bid by shut-out law firms” (Reuters)

  • As of 6/24: “US law firm Motley Rice appeals $396 mln opioid fee award“ (Reuters)

  • For the record, this site has received 0% of the opioid settlement funds, and its founder is still squarely one with the 99% people (epic law school debt and all).

  • See also “Top law firms in US opioid lawsuits to get hundreds of millions in fees” (Reuters)

    • “The panel gave national firm Motley Rice the largest share, with 18.6% of the funds, or $396 million. Other firms with large shares include New York-based Simmons Hanly Conroy, with 11.4%, or $244 million; California-based Robbins Geller Rudman & Dowd, with 8.2%, or $174 million; and California-based Lieff Cabraser Heimann & Bernstein, with 5.65%, or $120 million.” Id.

• hospitals and insurers as of August 2024: “Drug distributors strike $300 mln opioid settlement with US health plans“ (Reuters)

  • See also “Pharma Distributors Get Nod in $300 Million Opioid MDL Agreement” (Bloomberg Law)

    • “Cencora Inc., Cardinal Health Inc., and McKesson Corporation got preliminary approval of a $300 million settlement with third party payors after the payors alleged the healthcare companies harmed them in their pursuit of opioid profits.” Id.

  • As of 2/28: “Multiple hospital groups point to opioid crisis for financial struggles” (Becker’s Hospital Review), “Hospital Groups Allege Opioid Crisis Damaged Their Finances” (Law360)

• Indivior as of 7/26: “Indivior reaches $86 million opioid settlement with 16 US states“ (Reuters)

  • As of 10/23/2023: “Indivior Reaches Agreement with Direct Purchasers to Resolve Antitrust Multi-District Litigation” (Indivior)

  • Indivior will be added to the visualizations above at a later date; see About OST’s scope of opioid corporations (below).

• Hikma as of 7/16: “Pharma Firm That Owes Millions in Opioid Settlement Wants in on Lucrative Anti-Overdose Drug Contract” (The City)

  • As of 2/1: “Hikma Announces Agreement in Principle for Nationwide US Opioid Settlement Framework“ (Hikma)

    • “As part of the settlement in principle with Hikma, Hikma will pay $150 million to participating states and localities, encompassing $115 million in cash and $35 million worth of opioid addiction treatment medication. States that do not accept the medication will receive cash in lieu of product. The settlement in principle was negotiated by the attorneys general of New York, California, Delaware, Tennessee, Utah, and Virginia in coordination with an executive committee consisting of AG Campbell, along with the attorneys general of Colorado, Idaho, Illinois, North Carolina, Ohio, and Oregon.” 2/1 MA AG press.

  • See also “Tribes Will Get Part of $150M Settlement from Opioid Manufacturer Hikma Pharmaceuticals” (“It is unclear how much of the settlement will be allocated to federally recognized tribes”) (Native News Online 2/7)

• Rite Aid as of 7/10: “Rite Aid Corporation and Affiliates Agree to Settle False Claims Act and Controlled Substance Act Allegations Related to Opioid Dispensing“ (DOJ)

  • As of 3/26: “reaches bankruptcy settlement with lenders, DOJ, McKesson“ (Reuters)

  • “Rite Aid already has reached several settlements, including one announced last year with the state of West Virginia for up to $30 million” (AP). See also “Rite Aid Advisers Rake in Millions Through Bankruptcy. Opioid Victims Brace For Nothing.” (Bloomberg), “Bankrupt Rite Aid sues US Justice Dept to stop opioid lawsuit” (Reuters), “Rite Aid’s Reasons For Ch. 11 Go Beyond Opioid Suits” (Law360), “Rite Aid Taps Into DIP Loans, Sets Fast Ch. 11 Sale Schedule” (Law360), “Walgreens Agrees to $192.5 Million Settlement with Shareholders over Failed Rite Aid Merger” (RTP), “Rite Aid seeks Chapter 11 bankruptcy protection as it deals with lawsuits and losses” (AP), “Rite Aid Prepares Bankruptcy That Would Halt Opioid Lawsuits” (WSJ), “Rite Aid reaches opioid litigation ceasefire in $10.5 million settlement” (Reuters)

• “Local governments struggle to distribute their share of billions from opioid settlements” (Associated Press)

  • “More than half of the funds will be controlled by local governments, according to Christine Minhee, who runs the Opioid Settlement Tracker website.” Id.

• Endo as of 5/3: “Opioid Manufacturer Endo Health Solutions Inc. Ordered to Pay $1.536B In Criminal Fines and Forfeiture for Distributing Misbranded Opioid Medication“ (U.S. Dept. of Justice), “Endo Judge Hopes Criminal Sentence Warns Opioid Makers“ (Law 360)

  • “The transaction is expected to close as early as late April 2024.” 3/19 Endo press. See also “Endo Announces Confirmation of Plan of Reorganization” (Endo), “Drugmaker Endo receives US court approval for bankruptcy restructuring” (Reuters).

  • “As part of Endo’s bankruptcy plan, a group of Endo’s secured lenders will purchase Endo’s assets and operate the business under a new corporate structure. … [T]he new company will fund voluntary trusts in settlement of opioid-related claims against Endo, including public trusts that will pay over $450 million to state, municipal and Tribal entities to help fund programs to abate the opioid crisis.” “Opioid Manufacturer Endo Health Solutions Inc. Agrees to Global Resolution of Criminal and Civil Investigations into Sales and Marketing of Branded Opioid Drug,” “United States Reaches Settlement Of Law Enforcement, Tax, And Healthcare Cost Claims In Endo International Bankruptcy Case“ (Dept. of Justice).

    • “The proposed Justice Department settlement calls for paying the $365 million over 10 years, plus an additional $100 million contingent payment if Endo outperforms financial expectations from 2024 to 2028. … As part of its bankruptcy, Endo has committed to pay $465 million to U.S. states, $119.7 million to people affected by opioid addiction, and $11.5 million to a trust for future opioid claimants…” (emphasis mine). “Endo creditors seek to resolve U.S. government claims for $465 mln” (Reuters).

  • A narrative history of Endo’s settlement is here. See also “Drugmaker Endo Cleared to Poll Creditors on Opioid Settlements“ (BNN Bloomberg), “Bankrupt Endo says US government objections imperil $600 million in opioid settlements” (Reuters), “Endo’s Chapter 11 Plan Has Unusual Provision Leaving Door Open to Litigation” (WSJ).

• Amneal as of 5/3: “Drugmaker Amneal agrees to $270 million U.S. opioid settlement” (Reuters)

  • “Amneal reached an agreement in principle to pay $92.5 million in cash and provide $180 million worth of naloxone nasal spray, an overdose treatment medication, to resolve lawsuits by U.S. states, local governments and Native American tribes.” Id.

  • See also “Amneal Reports First Quarter 2024 Financial Results” (Amneal)

• Walgreens as of 2/23: “Walgreens Investors Near Deal In Suit Over Opioid Epidemic” (Law360)

  • A narrative history of the “big three” pharmacies’ settlements is here.

• Mallinckrodt as of 2/15: “Court Mulls If Claims Buyer Qualifies For Special Ch. 11 Trust” (Law360)

  • See “Mallinckrodt Bankruptcy Plan Gets Approval, Will Wipe Out $1 Billion in Opioid Payments” (WSJ). Per Reuters: “As part of its previous bankruptcy, Mallinckrodt, which denied wrongdoing, agreed to pay $1.7 billion … The new bankruptcy reduces that to $700 million, all of which has already been paid to a settlement trust.”

  • A narrative history of Mallinckrodt’s settlement is here.

• Publicis as of 2/1: “U.S.-Wide Settlement Agreement Reached Concerning Opioid-Related Work by Rosetta, Bringing to a Close Three Years of Discussions” (Publicis Groupe)

  • “Publicis Health shall pay Settling States a total amount of $350,000,000 as provided and subject to the conditions set forth herein (‘the Settlement Amount’). A part of the Settlement Amount shall be reserved to reimburse the Settling States for attorney foes, costs, and expenses associated with the investigation and to fund the document repository as set forth in IV.F. Of the Settlement Amount, $343,000,000, shall be allocated among the Settling States as agreed to by the Settling States (the ‘Settlement Abatement Amount’).” See Consent Judgment.

  • “Court documents detail how Publicis acted as Purdue’s agency of record for all its branded opioid drugs, including OxyContin, even developing sales tactics that relied on farming data from recordings of personal health-related in-office conversations between patients and providers. The company was also instrumental in Purdue’s decision to market OxyContin to providers on patient’s electronic health records.” 2/1/2024 CT AG press.

    • Note: Publicis will at some point be added to the States’ Individually Reported Opioid Settlement Sums table (below). For now, states’ individual amounts may be viewed here.

• Publix as of 1/26: “Opioid sales boomed at Publix while other pharmacies settled suits” (Tampa Bay Times)

• Johnson & Johnson as of 1/24: “[Washington] AG Ferguson: Johnson & Johnson to pay nearly $150M over its role fueling opioid epidemic“ (WA AGO)

  • For other states’ settlements with J&J, see States’ Individually Reported Settlement Sums (below).

  • For the current status on J&J’s national settlement accord (which WA’s AG rejected), see the Official Opioid Settlement Tracker Tally (above).

  • For more on J&J, see Narrative Histories of the More Eventful Opioid Settlements: Johnson & Johnson (also below).

• The surprisingly uneventful “Opioid Settlement Accountability Act“ (H.R. 6956; introduced 1/11)

  • “‘What disappoints me is that it’s called the 'Accountability Act,' but nothing in there is about transparency,’ said Dennis Cauchon, president of the nonprofit Harm Reduction Ohio. “Transparency is the most important lever.’” (As told to KFF/NPR.)

• Teva as of 1/8: gated: “Teva, Israeli Investors End Investor Suit Over Opioid Scandal” (Law360)

  • A narrative history of Teva’s (and Allergan/AbbVie’s) settlement is here.

• Kroger as of 9/8/2023: “…to pay up to $1.4 billion to resolve US opioid lawsuits” (Reuters), “Reaches Agreement in Principle for Nationwide Opioid Settlement” (Kroger)

  • “Kroger has agreed to pay up to approximately $1.4 billion or $1.1 billion after tax with approximately $1.2 billion to be paid over 11 years and approximately $177 million to be paid over six years, each in equal installments. Initial payments will begin in December 2023 and would total approximately $140 million per year pre-tax for the first six years and approximately $110 million per year pre-tax for the following five years.” 9/8/2023 Q2 2023 Earnings Call.

    • “[T]his settlement … will not affect Kroger’s ability to complete its proposed merger with Albertsons.” Id.

    • See also “Kroger to divest over 400 stores in bid to close $25 billion Albertsons deal” (Reuters)

Jump to:

• The Official Opioid Settlement Tracker Tally

• Top Headlines

• States’ Individually Reported Opioid Settlement Sums

  • Note: This spreadsheet will receive a major update this year.

• Global Settlement Tracker APPENDIX (NEW!)

  • Opioid Settlement Tracker’s (OST) Global Settlement Tracker methodology

    • About OST’s scope of opioid corporations

    • About OST’s Global Settlement Tracker tally calculations

    • About that “State/Local” column

  • A note about Native American tribes’ opioid litigation

  • Narrative histories of the more eventful opioid settlements

    • Johnson & Johnson, McKesson, AmerisourceBergen, Cardinal Health

    • CVS, Walgreens, Walmart

    • Purdue

    • Mallinckrodt

    • Teva, Allergan

    • Endo

The below is my 51-state survey of settlements reached with the major U.S. opioid corporations:

• McKinsey (consulting)

• Johnson & Johnson, Purdue, Teva, Allergan, Mallinckrodt, and Endo (manufacturers)

• McKesson, AmerisourceBergen (now Cencora), and Cardinal Health (distributors)

• CVS, Walgreens, Walmart, and Kroger (retailers, i.e., pharmacies)

Finalization and distribution statuses for each of the settlement accords referenced below — including amounts specifically allotted for state, local, and tribal governments — are now available at the very top of this “Global Settlement Tracker” page.

As of March 2024, the below visualization archives and replaces my original Global Settlement Tracker spreadsheet, which reigned supreme here on OST from 2019-2023. 🥲 (If you miss the chaotic table view of things, please let me know.)

Jump to:

Opioid Settlement Tracker’s (OST) Global Settlement Tracker methodology

• About OST’s scope of opioid corporations

• About OST’s Global Settlement Tracker tally calculations

• About that “State/Local” column

A note about Native American tribes’ opioid litigation

Narrative histories of the more eventful opioid settlements

• Johnson & Johnson, McKesson, AmerisourceBergen, Cardinal Health

• CVS, Walgreens, Walmart

• Purdue

• Mallinckrodt

• Teva, Allergan

• Endo

Where values are presented as a range (e.g., Purdue’s $5.5-6 billion), I use the lower figures in the calculation of my sum tallies (e.g., $5.5 billion).

• “As reported.” Reported opioid settlement sums typically reflect the total sum eventually transferable to all of the plaintiffs involved in the opioid litigation over time, and not just to state/local governments. This sum of opioid settlements is greater than the combination of the “state/local” and “tribal” totals because there are classes of plaintiffs whose amounts I have yet to publish, e.g., the thousands of individual claimants involved in Purdue’s, Endo’s, and Mallinckrodt’s bankruptcy proceedings.

• “State/local.” The “State/Local” column in The Official Opioid Settlement Tracker Tally displays exactly how much money will go to state and local governments, as a figure separate from amounts that belong to tribal governments (“Tribal”). Purdue’s amount here remains unknown (see below). For the sake of completion, I used state-specific references to NOAT values like these to guesstimated an overall NOAT value of $3 billion. If anyone can put me out of my misery and let me know what the NOAT itself is worth, I’d be much obliged: Tips@OpioidSettlementTracker.com.

• “Tribal.” Native American tribes’ entitlement under Endo’s settlement has yet to be announced, and I have no intelligent means of guesstimation at the moment, so I substituted a value of $0 for this portion of the tally.

The “State/Local” column in The Official Opioid Settlement Tracker Tally displays exactly how much money will go to state and local governments, as a figure separate from amounts that belong to tribal governments (“Tribal”). These sums are lower than those displayed under “Reported Value,” because reported opioid settlement sums typically reflect the total sum eventually transferable to all of the plaintiffs involved in the opioid litigation over time, and not just to state/local governments. See, e.g., the individual trust distribution procedure documents drafted for each of Purdue’s several classes of claimants.

For all official updates, visit TribalOpioidSettlements.com.

On February 1, 2022, and under a separately announced (proposed) agreement, the “big three” distributors agreed to pay tribal sovereign governments almost $440 million (in addition to a prior $75 million settlement between the “big three” and the Cherokee Nation) and J&J agreed to pay $150 million. The settlement became effective once at least 95% of litigating tribes and 14 of the 17 non-litigating tribes agreed to participate in its framework. All 574 federally recognized Native American tribes were eligible to participate, regardless of whether or not they’ve sued the offeror-companies.

We often discuss how $26 billion opioid settlement offer might impact state and local governments. Rarely do we address its potential impact on the “574 federally recognized Native American tribes and Alaska Native villages, which experienced higher rates of opioid overdoses compared to other communities” and are technically sovereigns entitled to home court advantage, but whose cases were procedurally grouped alongside political subdivisions’ in the federal opioid multi-district litigation.

The history between federal, state, and tribal governments is rich, to say the least. But according to one attorney for Native American tribal plaintiffs, “Since the 1970s, when the federal government ushered in the era of self-determination, tribal governments in this country get stronger every day. …. This won’t be the last time tribes join together on cases like this.” For more, see The Curious Case of the Cherokee Nation, Why are localities and tribal sovereign nations also suing opioid corporations, in addition to states?.

See also: “Center for Indigenous Health Launches Guide for Spending Tribal Opioid Settlement Funds” (Native News Online), “Cherokee Nation announces proposal to use opioid settlement funds to build drug treatment facilities” (5 News)

This very last section is for you weirdos who like long-form explanations (like me 😅). Settlements in order of reported value:

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The lion’s share of our $50+ billion — $26 billion — comes from opioid manufacturer Johnson & Johnson and the “big three” distributors McKesson, AmerisourceBergen (now Cencora), and Cardinal Health. Their settlement agreement was finalized on February 25, 2022.

• Distributor Settlement Agreement (agreement with McKesson, Cardinal Health, and AmerisourceBergen)

• Janssen Settlement Agreement (agreement with Johnson & Johnson)

• For individual state amounts, see States’ Opioid Settlement Statuses.

• Finalization and distribution statuses are monitored here.

• For payout amounts by locality, see “Find Out How Much Opioid Settlement Cash Your Locality Received” (KFF).

Though often described as “national” or “global,” this $26 billion settlement involving the “big three” and J&J does not resolve litigation against those various other opioid manufacturers, distributors, and retailers (pharmacies). It is also unrelated to cases brought by the federal government, such as the Department of Justice’s late-December 2022 civil suit against AmerisourceBergen.

Participating states met their January 26, 2022 political subdivision sign-on deadline with a “90%” local government participation rate, which gave “Cardinal, McKesson, AmerisourceBergen, and Johnson & Johnson … until February 25, 2022 to decide whether to move forward with the settlement. “The four companies notified lawyers for the governments in the case that their thresholds were met, meaning money could start flowing to communities by April.”

TIMELINE OF THE SIGN-ON TEA

• As of January 26, 2022, “[a]bout 90% of local governments nationwide that were eligible to participate in the settlement … had opted to do so” (Reuters). January 26 served as participating states’ deadline to convince their political subdivisions (cities, counties) to also surrender their litigation against the offeror companies and assent to the deal. The full approval timeline may be found below.

  • Legal uncertainty fueled much of the state-local political drama during this process. “At its core, the proposed $26 billion deal brokered by state attorneys general with major drug companies depends on whether enough cities and counties agree to sign on. And whether a state can force one of its cities to accept a settlement is an open question in about half of the states, which would have to be decided by their top courts” (Law360). This explains why, in a “rare spectacle,” two Pennsylvania district attorneys sued the state’s attorney general for committing his state to the global settlement deal. (A state court dismissed their case due to ripeness issues on February 4, 2022, stating that “[a]t this juncture in this matter, it is impossible for this court to declare the respective rights of the parties regarding a settlement agreement that has yet to be executed and that may still be modified, as it has been before.")

• Political subdivision participation was so important because about $10.7 billion of the deal depended upon cities’ and counties’ approval. The specifics:

  • States are entitled to a base payout when they agree to participate in settlement (55% of Distributor payments, 45% of Janssen payments), but only unlock 100% of funds with local government cooperation. To receive 100% of funds (i.e., the “base” + full local government participation “incentive” payout), states must convince their localities to surrender their opioid cases against the offeror-companies listed above. Specifically, they must pass a “[s]tatute or court ruling that terminates existing and bars future claims by subdivisions,” receive “releases on behalf of … all general purpose subdivisions above 10,000 population [and] all currently litigating subdivisions,” or a “combination of these approaches that results in a complete bar of existing and future claims (e.g., legislation barring future claims combined with 100% participation by litigating subdivisions).” Anything less results in decreased “incentive” payments. The flowchart below from the MDL’s Plaintiffs’ Executive Committee’s website explains this pretty well. For more: Distributors: Base and Incentives, Johnson & Johnson: Base and Incentives.

• On September 4, 2021, the offeror-companies announced that “enough” states (42) had signed onto the deal to proceed with the political subdivision period, even when the settlement’s “complex formula” initially “envisioned at least 44 states participating.” The companies ultimately reserved the power for themselves to decide “whether a ‘critical mass’ [of states] had joined and whether to finalize the deal” and ultimately did so on September 4, when they determined that 42 participating states constituted sufficient quorum. (The current, updated list of opt-out states is below.)

  • By contrast, the big tobacco Master Settlement Agreement of the nineties garnered the assent of 46 states’ attorneys general — a feat likely made easier by the fact that plaintiffs there were primarily state governments suing the four largest U.S. tobacco manufacturers. In the opioid litigation, localities are suing alongside their containing states, and together they’ve cast a litigatory net over an entire supply chain (opioid manufacturers, distributors, and retailers). This yields an exponentially larger set of claims and defenses between the however many permutations of plaintiff, defendant, and forum. The mind reels.

back to top | back to CONTENTS | back to APPENDIX > NARRATIVE HISTORIES

On November 2, 2022, the “big three” pharmacies — CVS, Walgreens, and Walmart — agreed to settle their claims with state, local, and tribal governments. “The proposed settlement — potentially one of the last big accords spawned by more than five years of litigation over the highly addictive painkillers” requires CVS to pay $4.904-5 billion, Walgreens to pay $4.95-5.52 billion and Walmart to pay $2.74-3.1 billion.

And on June 9, 2023, several states announced that the CVS and Walgreens portions of this deal were “moving forward,” thus concluding the state and subdivision sign-on processes for those settlements only. “A final agreement with Walmart … is not being announced [yet]; however, that settlement is expected to move forward in the coming weeks.”

• Finalization and distribution statuses are monitored here.

  • CVS Settlement Agreement

  • Walmart Settlement Agreement | Walmart Proposed Settlement Structure / Term Sheet

  • Walgreens Settlement Agreement

• For individual state amounts, see States’ Opioid Settlement Statuses.

back to top | back to CONTENTS | back to APPENDIX > NARRATIVE HISTORIES

$3.58 to $4.25 billion will come from Teva. The manufacturer’s agreement in principle — announced July 26, 2022 — sits separately as well. On January 9, 2023, Teva announced that it had attained sufficient state support to proceed with its political subdivision (localities) sign-on process. And on June 8, 2023, Teva announced that it had concluded both its state and subdivision sign-on periods, “resolved its opioid litigation with all 50 U.S. states and more than 99% of the litigating subdivisions” entirely, and “anticipates making its first payment under the nationwide opioids settlement agreement in the second half of 2023.”

The offer is a unique cash-drug hybrid: $4.25 billion includes “up to $1.2 billion” of Narcan. Those skeptical of this term might be intrigued to learn that states and localities will be able to “opt for additional cash in lieu of an allotment of the overdose medication, at a value of 20% of the drug's list price.”

• Finalization and distribution statuses are monitored here.

  • Teva Global Opioid Settlement Agreement

• For individual state amounts, see States’ Opioid Settlement Statuses.

• See also “Teva agrees to pay $126 million to US hospitals over opioids” (Reuters)

$2.02 to $2.37 billion derives from AbbVie’s Allergan unit. The manufacturer’s agreement in principle, announced July 29, 2022, is a “companion agreement” that “clears the way for Teva … to finalize” its settlement. (“Teva bought Allergan's generic drugs unit in 2016, and its settlement was contingent on Allergan reaching a nationwide deal.”) Like Teva’s offer, AbbVie’s also “includes money [previously promised] under settlements with individual states.”

• Finalization and distribution statuses are monitored here.

  • Allergan Public Global Opioid Settlement Agreement

• For individual state amounts, see States’ Opioid Settlement Statuses.

back to top | back to CONTENTS | back to APPENDIX > NARRATIVE HISTORIES

Oh, Purdue. Purdue’s $5.5 to $6 billion deal, after surviving an earlier federal appeal, died at the Supreme Court’s hands on June 27, 2024, when the high court rejected its non-debtor release provisions. “In a 5-to-4 decision, written by Justice Neil M. Gorsuch, a majority of the justices held that the federal bankruptcy code does not authorize a liability shield for third parties in bankruptcy agreements.” See “Supreme Court Rejects Liability Shield at Center of Purdue Pharma Settlement” (The New York Times).

The manufacturer’s settlement plan achieved full nationwide (political) support on March 3, 2022 after years of struggle and months of bankruptcy-initiated mediation proceedings. Then, on August 10, 2023, the Supreme Court “entered the chat.” See “US Supreme Court halts Purdue Pharma bankruptcy settlement pending review” (Reuters)

A brief timeline:

• The oft-vilified OxyContin maker was entangled in hotly contested bankruptcy proceedings for nearly two years before its reorganization plan was approved by Judge Drain on September 1, 2021.

• Several states’ attorneys general and the DOJ then loudly announced their intent to challenge the plan’s approval, identifying its most controversial feature — broad protection of the Sacklers from civil liability — as the basis of their objections.

• On December 16, 2021, a federal district court overturned the plan.

• Purdue appealed the decision to the Second Circuit Court of Appeals.

• And the Second Circuit ruled in favor of Purdue on May 30, 2023, “clearing the way” for Purdue to dissolve itself and reemerge as Knoa Pharma.

  • See “Second Circuit Court Upholds Purdue Pharma’s Plan of Reorganization on Appeal” (PurduePharma.com), “An Appeals Court Gave the Sacklers Legal Immunity. Here’s What the Ruling Means” (The New York Times), “Purdue Opinion Deepens Circuit Split Over Bankruptcy Releases” (Bloomberg Law)

• On August 10, 2023, the Supreme Court agreed to hear the U.S. Trustee’s challenge of the plan, putting the whole thing on hold once more. See “Supreme Court Pauses Opioid Settlement With Sacklers Pending Review” (The New York Times).

• On December 3, 2023, the Supreme Court began hearing oral arguments, kicking off a process that will hopefully finally adjudicate this multi-year legal battle and epic saga of uniquely American capitalistic dystopia + populistic discontent:

  • “Opioid maker Purdue’s bankruptcy case comes before Supreme Court” (SCOTUSblog)

  • “As high court weighs Purdue bankruptcy, opioid settlement divides victims” (The Washington Post)

  • “Explainer: How will the Supreme Court reshape US opioid epidemic relief?” (Reuters)

  • Gated: “Fate of Billions for Opioid Victims From Sacklers Rests With Supreme Court” (The New York Times), “The Opioid Victims Who Won’t Sign Off on Purdue’s $6 Billion Settlement” (WSJ)

  • See also “US Supreme Court halts Purdue Pharma bankruptcy settlement pending review” (Reuters), “Opioid Victims Struggle to Claim Their Part of Purdue’s $6 Billion Settlement” (Bloomberg), “Opioid Victims Object to Supreme Court Review of Purdue Pharma’s $6 Billion Settlement” (WSJ)

• And on June 27, 2024, the Supreme Court concluded its review of the plan’s non-debtor release clauses and ruled against the deal.

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$1.7 billion should have come from Mallinckrodt, but their second bankruptcy deal slashes a cool billion from this sum. “As part of its previous bankruptcy, Mallinckrodt, which denied wrongdoing, agreed to pay $1.7 billion to settle about 3,000 lawsuits alleging it used deceptive marketing tactics to boost opioid sales. The new bankruptcy reduces that to $700 million, all of which has already been paid to a settlement trust” (Reuters 10/10) (emphasis mine).

The manufacturer first filed for bankruptcy in 2020, and its first restructuring plan — which included a $1.7 billion (formerly $1.6 billion) set-aside to resolve its opioid crisis liabilities — had early blanket support from state and local government attorneys. The deal also faced numerous, Purdue-style objections before finally winning court approval on February 3, 2022.

• Finalization and distribution statuses are monitored here. For individual state amounts, see States’ Opioid Settlement Statuses.

• (First) Restructuring Plan | Bankruptcy Court’s Confirmation Order | Master Disbursement Trust Overview

  • Cf. National Opioid Abatement Trust II (thank you kindly to MKN’s trustees for sharing), Mallinckrodt Opioid Personal Injury Trust page, Massachusetts AG’s Frequently Asked Questions about the Mallinckrodt Plc Settlement

• See also “Mallinckrodt plc (in examinership) Receives U.S. Court Approval for Financial Restructuring Plan” (MNK 10/10), “Bankrupt Drugmaker Mallinckrodt Considers Sale of Opioid Business” (WSJ 9/18), “Mallinckrodt’s opioid creditors support fast-track second bankruptcy” (Reuters 8/30), “Mallinckrodt to Go Bankrupt for Second Time in Three Years” (Bloomberg 8/23), “Opioid Maker’s Bankruptcy Plan Would Cut Payments to Victims by $1 Billion” (NYT 8/23), “Mallinckrodt Gets Another Extension on Opioid Settlement Payment” (Bloomberg 7/17), “Mallinckrodt in Talks to Cut Opioid Settlement by Up to $1 Billion” (WSJ 7/6), “Mallinckrodt Gets Second Extension on Opioid Settlement Payment” (Bloomberg 6/23), “Mallinckrodt Pays Executives $3.4 Million in Bonuses After Skipping Interest, Opioid Payments” (WSJ 6/21)

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On August 16, 2022, the manufacturer announced both its bankruptcy filing and an agreement in principle reached with states’ Attorneys General. Since then, there has been some confusion over Endo’s total settlement value, particularly in regards to U.S. states and localities:

• As reported November 2023: “The proposed Justice Department settlement calls for paying the $365 million over 10 years, plus an additional $100 million contingent payment if Endo outperforms financial expectations from 2024 to 2028. … As part of its bankruptcy, Endo has committed to pay $465 million to U.S. states, $119.7 million to people affected by opioid addiction, and $11.5 million to a trust for future opioid claimants” (Reuters).

• As reported in January 2024: “Endo’s restructuring plan includes settlements with state and federal authorities, and is expected to pay individual opioid victims between $89.7 million and $119.7 million, according to court documents. The company has also agreed to pay $273 million to more than 40 states and as much as $365 million to the U.S. Justice Department. The exact amount of the payments depends on whether Endo opts to pay some settlements in full when the company leaves bankruptcy or over time, the documents show” (BNN Bloomberg).

In either case, finalization and distribution statuses will be monitored here.

• Term Sheet (dated 11/20/2023).

• For individual state amounts, see States’ Opioid Settlement Statuses.

• See also “Bankrupt Endo says US government objections imperil $600 million in opioid settlements” (Reuters)

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