US state of Alabama to receive $276M in opioid settlement

By Michael Hernandez

WASHINGTON (AA) - The US state of Alabama will receive $276 million following a settlement with two pharmaceutical manufacturers and one pharmaceutical distributor over the state's opioid crisis.

The agreement, announced on Tuesday, includes a $25 million lump sum payment from Endo Pharmecutical, a $70.3 million payment from Johnson & Johnson, and $141 million from the McKeeson drug distributor that will be dolled out over nine years, the state's attorney general said in a statement.

“These three settlement agreements affirm my decision to decline participation in the national opioid settlements, which did not adequately acknowledge the unique harm that Alabamians have endured and would have redirected millions of dollars to bigger states that experienced a less severe impact,” Steve Marshall said.

According to the settlement, the funds are to be directed toward remedying the harms of the opioid pandemic, which will be determined by the state legislature.

An additional $40 million in attorneys’ fees and other state costs are being included in the settlement.

“Having encountered the utter darkness of the opioid crisis at my own doorstep, this is one of my most meaningful accomplishments as your Attorney General," said Marshall.

Additional claims remain outstanding against opioid manufacturers Purdue Pharma, Mallinckrodt, and Insys.