Ohio Attorney General Dave Yost announced that he along with 21 other attorneys general have secured final approval of a combined $17.3 billion settlement to hold two drug makers and two pharmacies accountable for their roles in the opioid-addiction crisis and help fund opioid recovery efforts.
Under the settlement, Ohio expects to receive a total of $679.6 million from drug makers Teva and Allergan and pharmacies CVS and Walgreens over the next 15 years.
The proceeds will be allocated in accordance with the OneOhio plan, as with prior opioid-related settlements; 55 percent of Ohio’s share will go to the OneOhio Recovery Foundation, 30 percent to local governments, and 15 percent to the state. The breakdown of Ohio’s $679.6 million allocation is as follows:
- $156 million over 13 years from Teva
- $93 million over seven years from Allergan
- $206.3 million over 10 years from CVS
- $224.3 million over 15 years from Walgreens.
According to Attorney General Yost, too many companies elect not to take action to help prevent the opioid crisis in Ohio and these funds will hold them accountable to assist in recovery and relief efforts.
“Too many companies chose not to recognize and take action to prevent the burgeoning opioid crisis that now continues to plague our streets. We, and they, have a moral obligation to help not hinder those that need assistance and this money will be used statewide for just that – recovery and relief,” Yost said.
Critics have placed the majority of the responsibility for America’s opioid epidemic on drug manufacturers and pharmacies, claiming that the over prescribing of some medications caused millions of individuals to develop drug addictions while also causing hundreds of thousands of overdose deaths.
The crisis became so severe that in 2017, former President Donald Trump declared it a public health emergency, enabling the use of more federal resources to address the issue.
The final agreement with the attorneys general also calls for Teva’s opioid division to stop all opioid marketing and make sure that the division puts safeguards in place to stop drug abuse, Allergen will not be selling opiods for the ensuing ten years, and pharmacies at CVS and Walgreens need to keep an eye on, report, and exchange information about any questionable activity involving opioid prescriptions.
The attorneys general from California, Illinois, Iowa, Maryland, Massachusetts, New York, North Carolina, Pennsylvania, Tennessee, Texas, Vermont, Virginia and Wisconsin led negotiations with Teva and Allergan.
Ohio helped to lead the negotiations with CVS and Walgreens, along with California, Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Kentucky, Louisiana, Massachusetts, Nebraska, New York, North Carolina, Pennsylvania, Rhode Island, Tennessee and Texas.
This settlement is the most recent in a series of agreements that AG Yost and his team have negotiated to assist in funding Ohio’s drug recovery. Yost also recently secured an $808 million settlement with opioid distributors Cardinal Health, McKesson, and AmerisourceBergen, a $185 million settlement with Johnson & Johnson and Janssen Pharmaceuticals Inc., a $24.7 million settlement with McKinsey & Co., and a $114 million proposed settlement with Walmart which Yost anticipates the attorney generals office will finalize in the coming weeks.
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Hannah Poling is a lead reporter at The Ohio Star and The Star News Network. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected]
