Kansas to receive multi-millions in settlements over opioids
TOPEKA – Kansas Attorney General Derek Schmidt has announced that his office has secured more than $45 million for Kansas as part of legal settlements with Teva and Allergan pharmaceutical manufacturers to resolve allegations that the companies contributed to the opioid addiction.
Schmidt said the two settlements will provide more than $6.6 billion nationally. As part of the settlement, Teva has agreed to stop promoting or lobbying for opioid products, monitor and report off-label use of fentanyl products, share clinical data through a third-party archive, disclose its records to a third party repository, and pay for an independent monitor to ensure compliance with the settlement.
Allergan has agreed to exit the opioid market entirely. The proceeds from the settlement must be used to provide treatment and recovery services for people struggling with opioid use disorder.
The settlements now go to the participating states to review, allowing for certain additional parties to join during the first quarter of 2023. With this settlement, Schmidt’s office has now recovered from 11 defendants more than $340 million for Kansas related to unlawful opioid manufacturing, marketing and distribution.
Schmidt has reached settlements with the following:
Cardinal Health, Inc., McKesson Corporation, & AmerisourceBergen Corporation – $153,002,437.92
Johnson & Johnson – $35,184,155.44
Teva – $28,405,105.74
Allergan – $16,909,682.36
McKinsey & Company – $4,805,800.46
CVS Pharmacy – $37,416,332.23
Walgreens Pharmacy – $40,695,230.06
Walmart Pharmacy – $21,190,065.47
Mallinckrodt – at least $6 million
“We have worked tirelessly to hold these companies accountable for the addiction and human suffering caused by years of their unlawful business practices,” Schmidt said. “By reaching these settlements, we have the opportunity to make generational changes in the lives of Kansans and communities that have been harmed by the tragic and often deadly consequences of drug addiction. In addition to restoring broken lives, our state has significant resources to address one of the root causes contributing to crime and other social issues.”
Schmidt said Kansas also is engaged in ongoing investigations and negotiations with other companies the state believes played a role in illegally fueling opioid addiction. It has previously been publicly disclosed that discussions are ongoing with Purdue Pharma and Endo International, both of which are in bankruptcy.
Under the Kansas Fights Addiction Act, proposed by Schmidt and enacted in 2021 by the Legislature, money recovered by the attorney general pursuant to opioid litigation will be used to address substance abuse and help ensure addiction services are provided throughout the state.
Funding will be available through a grant review board created by the statute. State agencies, local governments and not-for-profit entities may apply for funding for addiction treatment and abatement through the board. Additional information on the grant application and review process will be announced soon.