CVS, Walgreens, pharma firms agree to pay $19B in opioid settlement money to states by year’s end

A “complex and unprecedented” slate of previously announced settlements between a number of states and CVS, Walgreens and manufacturers Allergan and Teva Pharmaceuticals for those companies’ roles in fueling the national opioid epidemic have been finalized, the jurisdictions said Friday.

An additional $18.75 billion will now be provided to communities throughout the country to address the epidemic, according to the National Prescription Opiate Litigation Plaintiffs’ Executive Committee, which partnered with a number of state attorneys general, including in New York, California and Connecticut, to resolve the matter.

A joint statement by the committee’s negotiation team read: “Our team is proud to arrive at this moment for communities across the country in dire need of support to address and abate the opioid epidemic. The opioid epidemic has ravaged our country over the past decade and the effects continue today. This sign-on from state and local governments opens the door for more community recovery resources including support to first responders, health care workers, law enforcement, and so many others who work every day on the frontlines of this public health crisis.”

Consistent with previous “Big Three” opioid distributor agreements with AmerisourceBergen, Cardinal Health and McKesson, the settlements require 85% of the funds be allocated to programs that address the ongoing opioid crisis through treatment, education and prevention efforts.

New York AG Letitia James said the state will receive more than $1 billion from negotiated agreements with Teva, CVS and Walgreens, and that funding is part of the more than $2.6 billion secured by James from opioid manufacturers, distributors, and prescribers.

Related: CVS, Walgreens agree to pay $10.7 billion to 17 states to settle opioid prescription lawsuits

New York had already started receiving payments from Teva for the trial premium in recognition of New York’s landmark liability verdict following a six-month trial. James had previously settled with Allergen, but not as part of the national agreement with the company.

James had previously settled with Allergen, for up to $200 million, but not as part of the national agreement with that company.

“For years, Teva, CVS, and Walgreens peddled deadly opioids and today’s historic agreements hold these companies accountable for their role in this public health crisis,” James said. “These funds will help with opioid abatement, education, and treatment efforts in our communities.”

California Attorney General Rob Bonta said Allergan and Teva committed to move forward with settlements for up to $2.37 billion and $4.25 billion, respectively, to resolve allegations that the companies deceptively marketed opioids by downplaying the risks of addiction and overstating their benefits.

If approved by the court, California might receive up to approximately $375 million from the Teva settlement and up to approximately $205 million from the Allergan settlement, Bonta said.

“We’ve made historic strides forward in our fight for justice and relief for Californians hurt by the opioid crisis,” he said. “Nothing can bring back the lives lost or erase the suffering caused by this crisis, but we are making sure those who caused it and profited from it are held to account for their greed and willful misconduct.”

Connecticut Attorney General William Tong said Connecticut is expected to receive more than $200 million through the settlements to support opioid treatment and prevention.

“One by one we are taking on every player in the addiction industry and recovering billions of dollars nationwide to save lives and fight the opioid epidemic,” Tong said. “With these latest settlements, we have secured $600 million for Connecticut alone and more than $50 billion nationwide. But it is not just about the money—we are forcing these companies to adhere to strict reforms to stop the deadly flood of opioids into our communities.”