Alabama reaches settlements in lawsuits against opioid manufacturers

An announcement has been made by Attorney General Steve Marshall that Alabama has reached settlements amounting to $276 million in a lawsuit filed against several opioid manufacturing companies. 

A press release from Marshall's office stated that the companies Endo Pharmaceutical, Johnson & Johnson and McKesson had played a role in "exacerbating the opioid crisis" in the state. 

“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," he said. 

Marshall's press release also stated that Alabama has recovered approximately $40 million in attorneys' fees. 

See below for an outline of the settlement results from the press release: 

Endo Pharmaceutical: The State of Alabama and its subdivisions will receive $25 million this year in a lump-sum payment. By comparison, two similarly populated states and their subdivisions settled with Endo for 26% and 35% of the total that Alabama was able to secure. Pursuant to an agreement between the State and its litigating subdivisions, the State will receive $15 million, less attorneys’ fees, and its litigating subdivisions will receive $10 million.

Johnson & Johnson: The State of Alabama and its subdivisions will receive $70.3 million this year in a lump-sum payment. While the State would have received this same amount in the national settlement, it would have been paid out over nine years. The settlement funds will be split 50/50 between the State and its subdivisions.

McKesson: The State of Alabama and its subdivisions will receive $141 million over nine years. Under the national settlement, the State would have received only $115.8 million, paid out over eighteen years. The settlement funds will be split 50/50 between the State and its subdivisions.