Massive Opioid Settlement: Ohio Agrees To $26 Billion Settlement

COLUMBUS, OH — Ohio and other states reached a $26 billion settlement agreement with three opioid distributors and Johnson & Johnson on Wednesday.

In addition to the monetary portion, Cardinal, McKesson and AmerisourceBergen and Johnson & Johnson must change company policies to prevent future opioid crises, according to Ohio Attorney General Dave Yost.

“This isn’t an antidote for this devastating crisis that killed so many, but the financial resources will provide for significant recovery in Ohio,” Yost said.

The settlement is the result of an investigation led by several attorneys general, including Yost, into whether opioid distributors ignored questions about suspicious drug orders and whether Johnson & Johnson misled patients and doctors about the addictive nature of opioid-based drugs.

The agreement ends the investigations and litigation against the companies, Yost said.

"We recognize the opioid crisis is a tremendously complex public health issue, and we have deep sympathy for everyone affected. This settlement will directly support state and local efforts to make meaningful progress in addressing the opioid crisis in the United States,” said Michael Ullmann, executive vice president, general counsel, Johnson & Johnson.

During the second quarter of 2020 in Ohio, 11 of every 100,000 people died of an opioid overdose, the state’s highest mortality rate at any point during the epidemic.

How the Money Must Be Used

• The three opioid distributors must pay $21 billion over 17 years.
• Johnson & Johnson must pay $5 billion over nine years, with up to $3.7 billion paid during the first three years.
• Total funding will be determined by participation of both litigating and non-litigating state and local governments, Yost said.
• Most of the money must be used for opioid treatment and addiction prevention.

In addition to the monetary directions, here are the other impacts on the companies:

• The three distributors must start an independent clearinghouse to collect data on where drugs are going, how often they're being shipped, and then provide that data to state regulators.
• Suspicious-opioid orders should be monitored using a data-driven system.
• Stop shipping opioids to fulfill suspicious orders.
• Stop sales staff from influencing decisions related to the fulfilling of suspicious orders.
• Stop pharmacies' ability to receive shipments if they request suspicious orders.

Johnson & Johnson must:

• Stop selling opioids.
• Stop providing grants to groups promoting the use of opioids.
• Stop lobbying on legislation related to opioids.
• Share clinical trial data under the Yale University Open Data Access Project.
• Senior Johnson & Johnson officials must participate in anti-opioid abuse efforts.

“The settlement announced today has the potential to help Ohioans turn the corner in our battle against opioids,” said Gov. Mike DeWine. “Thanks to the work from our nation’s attorneys general, the opioid makers and distributors that tore Ohio’s families apart are being held accountable and will support communities in their recovery.”