Legal Battles

Texas Settlement with Opioid Distributors and Manufacturer 

July 23rd, 2021

Bipartisan executive committees from multiple states led by their respective attorney generals reached global settlements with major opioid distributors, manufactures, and pharmacies. Opioid distributors 1) McKesson 2) Cardinal Health 3) AmerisourceBergen paid a combined amount of $21 billion and the opioid manufacturer Johnson & Johnson (J&J) who paid $5 billion for a total of $26 billion dollars. Texas will receive up to $1.17 billion from the distributors and $268 million from J&J to be spent on opioid prevention and treatment. 

The settlement was to recuperate losses from the fight against the rising opioid epidemic and to hold the companies accountable for their contribution to the ever growing healthcare crisis. The revolution of the legal claims against the company also included 

1. Increased safety and oversight over the distribution of prescription opioids

2. Independent monitoring to prevent diversion and misuse of opioids 

3. Establish/fund an independent clearinghouse to track opioid distribution nationwide

4. J&J and other manufacturer are prohibited from selling or promoting opioids

Texas Settlement with Pharmaceutical Companies

Jan 20, 2023

Texas is in the process of finalizing agreements with CVS and Walgreens to pay over $680 million in payment for their part in the opioid epidemic. The funds will be used to aid in prevention, harm reduction, treatment, and recovery services. The pharmaceutical companies will have to comply with a court-ordered order that requires the pharmacies to monitor, report, and share data about suspicious activity related to opioid prescription. 

Distribution of Funds in Texas

The Texas Term Sheet governs distribution and is an agreement between the state and litigating subdivisions with the goal of giving all 254 counties in Texas the opportunity to get funds for education, prevention, and treatment of drug abuse and opioid use.  It is administered by the Opioid Council to help get funds allocated fairly to every county in Texas, targeting regions hardest hit by the epidemic while making sure all Texans benefit from the prevention and recovery efforts.