What are these Settlement Agreements About?
In Idaho, opioid overdose deaths have risen dramatically in recent years and both the State and local governments have expended significant funds fighting the opioid crisis. States and local governments across the country have spent the last several years investigating and litigating against many companies to hold those responsible accountable and to change the pharmaceutical industry for the better.
A broad coalition of states and local governments have reached final settlement agreements with four of those companies, Johnson & Johnson, and three distributors: AmerisourceBergen, Cardinal Health and McKesson. These settlement agreements would resolve legal claims by participating States and local governments stemming from actions that fueled the opioid addiction epidemic.
How Much Money is Available for the State and Local Governments?
The agreements provide for payments totaling $26 billion, with a total maximum amount of $119,896,000 available for the State of Idaho and participating local governments. Johnson & Johnson will make payments over 9 years. The three distributors will make payments over 17 years. The State and local governments must use the funding to support approved strategies for fighting the opioid crisis. A certain portion of the funding may also be used to compensate attorneys who have pursued the opioid litigation on behalf of the State and local governments.
The total amount of funding that Idaho and local governments may receive depends on how many eligible local governments participate in the settlement. The State and local governments can secure the maximum payment by fully resolving all of the pending and potential opioid-related claims by public entities within the State. In short, the more local governments that participate, the more funds available for everyone.
Does the Settlement Agreement Provide for Changes in Pharmaceutical Industry Practices?
Yes. The agreements provide for major changes in how prescriptions will be distributed and sold, including increased oversight, independent monitoring, and a national database funded by the distributors to help stop deliveries of opioids to pharmacies where diversion and misuse are occurring. Johnson & Johnson will be prohibited from selling or promoting opioids.
Which Local Governments are Eligible to Participate?
Eligible local governments include: (1) all counties; (2) all general purpose local governments who currently have pending claims against Johnson & Johnson and the three distributors; and (3) all other cities with a population of 10,000 or greater. A list of the local governments in Idaho who are eligible to participate can be found above.
In order to obtain the maximum amount of funding, releases of claims will also need to be obtained by certain school districts, hospital districts, health districts and fire districts.
How Can Eligible Local Governments Participate?
Eligible Local Governments can participate by executing a Settlement Participation form, releasing all opioid-related claims against Johnson & Johnson, the three major distributors, and their subsidiaries, and agreeing to be subject to a Consent Order filed in Idaho state court resolving these claims.
What is the Deadline for Local Governments to Participate?
The initial participation deadline for local governments is January 2, 2022. Local governments may still join the settlement agreements after that date, but the payments the local government will be eligible to receive may be significantly reduced. Additionally, many of the incentive payments under the agreement require early participation by local governments and would be reduced if local governments delayed in joining the agreements.
How Will the Settlement Money Be Divided Between the State and Participating Local Governments?
The settlement provides a default that would divide the money allocated to the State of Idaho among three funds: 15% to participating local governments; 15% to the State; and 70% to a trust fund to be used for opioid remediation projects. The default agreement also provides for how the 15% of funds allocated to local governments will be split. The default percent assigned to each eligible local government is available at https://www.ag.idaho.gov/content/uploads/2021/09/Default-Allocation-of-Idaho-Local-Government-Funds-by-Local-Government.pdf.
The State and local governments have the option of entering into an agreement on how to allocate funds that differs from the default. The Attorney General supports the State and local governments working together to reach an agreement on how to allocate funds that provides the best result for the State, local governments, and the citizens of the State of Idaho.
What Happens if an Eligible Local Government Decides Not to Participate?
If an eligible local government decides not to participate it will not be entitled to receive any of the funds under the settlement agreement. The local government would retain any opioid-related claims against Johnson & Johnson and the three distributors that it would otherwise have unless those claims were barred by legislative or judicial action.
How Can I Learn More About the Settlement Agreements?
All local governments eligible to participate will also receive an additional notice with more information about the settlement agreements and how to participate on or around September 19, 2021.
Additional information about the settlements is also available at https://nationalopioidsettlement.com/
If you have further questions, you may also contact the Attorney General’s Office at:
Office of the Attorney General
Consumer Protection Division
Attention: Opioid Settlement
P.O. Box 83720
Boise, ID 83720-0010
208-334-2424
opioidsettlement@ag.idaho.gov
