PA To Get $148M From 2nd Wave Of Opioid Settlements

PA To Get $148M From 2nd Wave Of Opioid Settlements

Introduction

The first-year compensation from a second wave of federal court settlements involving the opioid and addiction problem could total up to $148 million in Pennsylvania.

Deals were struck with parties who were suing Teva and Allergan, as well as CVS, Walgreens, and Walmart, alleging that they contributed to the overdose fatalities and opioid addiction problem. These parties included states, cities, municipalities, and other parties.

The Pennsylvania Attorney General's Office's deputy chief attorney general for special litigation stated that funds from the most recent settlements may be disbursed as soon as next year.

The Pennsylvania Opioid Misuse and Addiction Abatement Trust's members were informed by the attorney general that the compensation amounts and schedules are subject to final court approval.

The AG stated that although the state doesn't foresee any issues with securing court permission, that approval is what will really cause the process of those payments to proceed.

The trust is in charge of regulating the state's opioid settlement monies and outlays, and it is run by the board of trustees' 13 members.

National settlements with prescription distributors McKesson, Cardinal Health, and AmerisourceBergen, as well as manufacturer Johnson & Johnson started paying out to state and municipal governments earlier this year.

These settlements will provide Pennsylvania a total payout of $1.07 billion over the course of 18 years. A nationwide settlement with OxyContin manufacturer Purdue Pharma is now on hold until the matter is heard by the US Supreme Court.

The contents of that agreement, which were negotiated and authorized in a bankruptcy court for the pharma company's Chapter 11 reorganization plan, will be scrutinized by the Supreme Court.

Even though they haven't declared bankruptcy, the Sackler family members would be protected from future personal claims by the $6 billion national settlement agreement.

In December, the Supreme Court will hear the case's oral arguments. Payouts to Pennsylvania and other litigating parties may be affected by a ruling. It was anticipated that the Commonwealth will get around $225 million.