US opioid crisis: Drug firms agree $26 billion settlement

A group of US state prosecutors on Wednesday unveiled a landmark settlement with large drug companies over the deadly nationwide opioid crisis.

The proposed $26 billion (€22.4 billion) agreement is the second-largest cash settlement ever after the $246 billion tobacco agreement in 1998.

What are the details of the deal? 

Three drug distributors, McKesson, Cardinal Health and Amerisource Bergen, are expected to pay a combined $21 billion. Drugmaker Johnson Johnson (JJ) would pay $5 billion.

The distributors will pay their share over the next 18 years. JJ will pay over nine years, with up to $3.7 billion paid during the first three years.

The companies said that while they “strongly dispute the allegations made in these lawsuits,” the settlement agreement and process were “important steps” toward resolution.

According to the proposed agreement, the payout would resolve 4,000 claims, as well as finance prevention and treatment programs, said New York Attorney General Letitia James.

Almost $2 billion of the funds will be reserved for private lawyers hired by governments to work on their suits against the opioid industry. State attorney general offices could also get a share. 

• On the front line of the opioid epidemic in the US

  Going out for the day

  While Jessie sits in her car seat, Cheryl takes out the baby stroller to be able to push Jessie around through the shopping mall. Cheryl doesn’t take Jessie to the mall often because it’s tiring to go on these trips. She prefers staying at home, or they go to the nearby playground. They often visit Jessie’s biological sister who lives two doors down.

• On the front line of the opioid epidemic in the US

  Catching her breath

  Raising a 3-year-old as a 71-year-old is a lot to ask for. The number of grandparents taking care of their grandchildren in the US because their parents are addicted to drugs, specifically opioids, is increasing. According to recent studies, around 12 percent of children in Arizona live with relatives, almost 9 percent of those live with their grandparents.

• On the front line of the opioid epidemic in the US

  Sitting on a bunch of admin

  On July 9, the Supporting Grandparents Raising Grandchildren Act was signed into law. It’s designed for grandparents who need information and assistance on issues in dealing with legal custody, available social services, and mental health counseling. One problem, however, is that relatives who take care of a child don’t get the same amount of financial support that foster care families do.

• On the front line of the opioid epidemic in the US

  A little joy goes a long way

  Jessie was apprehensive about riding the merry-go-round for the first time. When Cheryl was buying the tickets, the vendor asked about Jessie. Cheryl said that Jessie was her own daughter. She thinks Jessie’s biological mother is still alive, but doesn’t know where she is or if she’s in rehab. “The last time she was seen was in the fall of last year. Rumor has it that she was in Mesa.”

• On the front line of the opioid epidemic in the US

  Finding a way to make it work

  Cheryl knows that because of her age she probably won’t be around when Jessie grows up. She has some physical problems and Jessie does wear her out, but she doesn’t see a problem there. She believes it’s important Jessie is around family and not in the care of strangers. Her son will take care of Jessie after Cheryl’s gone.

• On the front line of the opioid epidemic in the US

  Sunday school

  Every Sunday, Cheryl and Jessie go to a Presbyterian church. Jessie is too young to attend the sermon so she goes to Sunday school. After the sermon, Cheryl and Jessie join other families for snacks in a large auditorium. The church has always been supportive of Cheryl. She has lost three husbands and a son due to a drug overdose. Cheryl believes taking care of Jessie is her last calling.

• On the front line of the opioid epidemic in the US

  Pushing Mommy around

  Cheryl has permanent damage to her back and also suffers from arthritis in her hands and sciatica in both legs. She wears a back brace to help relieve the pain. To be able to cope with the pain, she takes painkillers and other medicines. She can’t do without — especially with a young toddler pushing her around.

• On the front line of the opioid epidemic in the US

  It’s my party

  It’s Jessie’s third birthday. Only a few guests have been invited, so that it doesn’t get too busy for Jessie. Jessie’s mother had two other children: Jessie’s older sister, who’s in the care of Cheryl’s brother and his wife. But they couldn’t handle more than that. Jessie’s little brother has been adopted by a foster family.

• On the front line of the opioid epidemic in the US

  Taking it easy

  Just before Jessie’s mother went into labor, she had another hit of methamphetamine. After Jessie was born she was crying and screaming and twitching — typical withdrawal signs. Since then, Jessie has had to cope with a raft of health problems as a result of the drug abuse during pregnancy. Doctors are still monitoring her to see if there is any permanent damage.

  Author: Eline van Nes (Phoenix)

What did prosecutors say? 

James said the deal was meant to hold companies “accountable” and infuse “tens of billions of dollars into communities across the nation.”

“The numerous companies that manufactured and distributed opioids across the nation did so without regard to life or even the national crisis they were helping to fuel,” James said in a statement.

Connecticut Attorney General William Tong said that there was “not enough money in the world frankly to address the pain and suffering,” but the payout would “help where help is needed.”

Besides New York and Connecticut, North Carolina, Delaware, Louisiana, Pennsylvania and Tennessee back the agreements. 

Local governments will have four months to sign on after states approve the proposed deal. 

Did other states object? 

Prosecutors from at least two states criticized the agreement and pledged to continue litigation.

Washington state Attorney General Bob Ferguson said the proposed $527.5 million payoff to his state over 18 years was “not a transformative amount of money, and is not sufficient to address the opioid’s crisis’ devastation.”

West Virginia Attorney General Patrick Morrisey, whose state has already settled with the companies but could receive more through the deal, said he did not support the agreement. 

Morrisey said the deal “shortchanges” smaller states by apportioning funds on the basis of population rather than “the intensity of the opioid crisis.”

In the last 20 years, the opioid crisis has caused more than 500,000 deaths and imprisoned millions of Black people across the US.

fb/rt (AFP, AP, Reuters) 

Article source: https://www.dw.com/en/us-opioid-crisis-drug-firms-agree-26-billion-settlement/a-58584376?maca=en-rss-en-all-1573-rdf