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J&J Reaches Settlement Agreement with New York in Opioid Case

July 2nd, 2021 News & Politics 3 minute read
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J&J Reaches Settlement Agreement with New York in Opioid Case

Johnson & Johnson (J&J) has agreed to a $230 million settlement with New York preventing the drug marker from promoting opioids, and the company confirmed it has ended distribution of these products within the United States.  New York Attorney General (AG) Letitia James’ said the agreement also restricts J&J from lobbying about opioids, even at the federal level.  Johnson & Johnson has not marketed opioids in the U.S. since 2015 and fully discontinued the business in 2020.The $230 million total will be distributed according to an accelerated payment schedule to fund addiction treatment and abatement related to opioid use disorder (OUD) in New York communities who have struggled amid the epidemic.  These payments will be allocated over nine years.  Also, as part of the settlement, the drug maker could pay $30 million more in the first year if New York’s “executive chamber signs into law new legislation creating an opioid settlement fund,” according to the press release from the AG’s office.

J&J Reaches Settlement Agreement with New York in Opioid CasePhoto by Sora Shimazaki from Pexels

“The opioid epidemic has wreaked havoc on countless communities across New York state and the rest of the nation, leaving millions still addicted to dangerous and deadly opioids,” James said. “Johnson & Johnson helped fuel this fire, but today they’re committing to leaving the opioid business – not only in New York, but across the entire country.  Opioids will no longer be manufactured or sold in the United States by J&J.”In fall of last year, J&J announced it would contribute up to $1 billion in additional funds to settle lawsuits alleging it and other companies fueled the U.S. opioid epidemic.  At the time, Paul Hanly, a lead attorney for local governments pursuing federal lawsuits against opioid manufacturers and distributors, responded that plaintiffs were “very pleased with J&J’s agreement to resolve the cases…We are hopeful other companies defending the numerous litigations will see the wisdom of this step forward.”“This additional amount results from continued negotiations and is intended to maximize participation in the settlement,” J&J wrote in a statement.  It was quick to add, however, that the “settlement is not an admission of liability or wrongdoing, and the company will continue to defend against any litigation that the final agreement does not resolve.  The settlement will provide certainty for involved parties and critical assistance for families and communities in need.”Other defendants in the New York opioid litigation include Purdue Pharma, Mallinckrodt, Endo Health Solutions, Teva Pharmaceuticals USA, and Allergan Finance, all of whom have faced lawsuits across the nation.  In the most recent announcement, Johnson & Johnson said it “is not an admission of liability or wrongdoing by the company” and is “consistent with the terms of the previously announced $5 billion all-in settlement agreement in principle for the resolution of opioid lawsuits and claims by states, cities, counties and tribal governments.”James noted in the press release, “The state will focus on funding for opioid prevention, treatment, and education efforts in order to prevent any future devastation.”

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J&J Will Contribute Even More to Opioid Settlement FundsJohnson & Johnson is Facing 50k Lawsuits Seeking Billions
Sara E. Teller

About Sara E. Teller

Sara is a credited freelance writer, editor, contributor, and essayist, as well as a novelist and poet with nearly twenty years of experience. A seasoned publishing professional, she's worked for newspapers, magazines and book publishers in content digitization, editorial, acquisitions and intellectual property. Sara has been an invited speaker at a Careers in Publishing & Authorship event at Michigan State University and a Reading and Writing Instructor at Sylvan Learning Center. She has an MBA degree with a concentration in Marketing and an MA in Clinical Mental Health Counseling, graduating with a 4.2/4.0 GPA. She is also a member of Chi Sigma Iota and a 2020 recipient of the Donald D. Davis scholarship recognizing social responsibility. Sara is certified in children's book writing, HTML coding and social media marketing. Her fifth book, PTSD: Healing from the Inside Out, was released in September 2019 and is available on Amazon. You can find her others books there, too, including Narcissistic Abuse: A Survival Guide, released in December 2017.

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