Georgia nears $1 billion in settlements from opioid lawsuits
Published 7:00 am Monday, January 9, 2023
ATLANTA — As manufacturers and distributors of opioids continue to settle lawsuits for contributing to the opioid crisis, Georgia stands to receive a total of nearly $1 billion as a result of the various settlements.
Approximately 67% of drug overdose deaths in 2020 were related to opioids — or drugs like fentanyl, hydrocodone and methadone, which are sometimes prescribed to treat severe pain— according to Georgia Department of Health.
Attorney General Chris Carr announced Jan. 6 that Georgia is expected to receive more than $181 million in total base payments from national settlements with CVS, Walgreens, Teva and Allergan, which all recently joined.
“No Georgia community is a stranger to the devastating effects of the opioid crisis, and we must do all we can to support those who are struggling,” Carr said. “Today’s announcement is another step forward in our ongoing efforts to combat this epidemic and address the widespread damage its caused. Our top priority is to protect our fellow Georgians, and joining these settlements will ensure that our state receives much-needed resources to help expand critical treatment and recovery services.”
The funds will be used for treatment, prevention, reduction and recovery services.
The settlement requires the pharmacies to monitor, report, and share data about suspicious activity related to opioid prescriptions; Opioid distributors Teva and Allergan have agreed to strict limitations regarding the marketing, promotion, sale and distribution of opioids, per the settlement.
Last month, Carr announced that Georgia joined a settlement Dec. 15 with Walmart and would receive $28 million from a multi-state settlement.
Local governments have 90 days from the sign-on date to join the settlements with CVS, Walgreens, Teva and Allergan.
Below is a breakdown of settlement funds for Georgia:
CVS and Walgreens: Georgia joined the settlements on Dec. 21, 2022. The state will receive $50.1 million from CVS and $58.7 million from Walgreens.
Teva and Allergan: Georgia joined the settlements on Dec. 19, 2022. The state is expected to receive $44.9 million from Teva and $27.4 million from Allergan.
Cardinal, McKesson and AmerisourceBergen; Johnson & Johnson: Georgia (and its local governments) stand to receive approximately $636 million under the settlement agreement from January 2022. Cardinal, McKesson and AmerisourceBergen are three of the country’s major pharmaceutical distributors; Johnson & Johnson is an opioid manufacturer and marketer.
McKinsey & Company: In Feb. 2022, Gov. Brian Kemp announced receipt of $13 million from the management consulting firm that represents major opioid companies.