Former Opioid Maker Settles With States for $2.4B

Allergan agreement lifts industry's total payments past $40B
By Newser Editors and Wire Services
Posted Jul 30, 2022 1:50 PM CDT
States Reach $2.4B Deal With Former Opioid Manufacturer
FILE - The Allergan logo appears above a trading post on the floor of the New York Stock Exchange on Nov. 23, 2015. Opioid makers Allergan and Teva have agreed to pay $54 million in cash and overdose reversal drugs to settle a federal lawsuit brought by San Francisco, in an agreement announced Tuesday,...   (AP Photo/Richard Drew, File)

(Newser) – A former opioid manufacturer has agreed in principle to pay up to $2.4 billion in a deal with a dozen states over its marketing and product safety practices, state attorneys general announced. The company, Allergan, is now part of AbbVie but sold its generics division Actavis, including its opioid products, to Teva Pharmaceuticals six years ago. Under the settlement, payments will be made to state and local governments, Pennsylvania Attorney General Josh Shapiro said Friday. The agreement means pharma companies have consented to pay more than $40 billion to settle opioid crisis claims regarding manufacturers and distributors, the AP reports. The agreement follows a similar, $4.3 billion deal with Teva Pharmaceuticals.

Shapiro said the settlement involved claims that Allergan, which produced Norco and Kadian brand generic opioids, played down the risk of addiction in marketing and did not do enough to prevent the drugs from being improperly diverted. “No amount of money will bring back the lives we lost, but today’s agreement will help ensure we can fund the programs Pennsylvania counties need for our communities to recover from this crisis,” Shapiro said in a statement. Negotiations with Allergan and Teva continue over their business practices and transparency, Shapiro's office said.

The global agreement involves California, Illinois, Iowa, Maryland, Massachusetts, North Carolina, Tennessee, Texas, Vermont, Virginia, and Wisconsin. Other states will be able to sign on, a Shapiro spokeswoman said. New York settled with Allergan in December. The opioid addiction and overdose epidemic has been linked to more than 500,000 deaths in the US over the past two decades, per the AP. North Carolina Attorney General Josh Stein said Friday that in 2020, nine people in his state died daily from overdoses. “There is no amount of money that could ever repair that kind of loss, but there is hope in recovery — and thanks to our ongoing work to hold these drug companies accountable, people across this state are getting the treatment and support they need to get healthy,” Stein said. (Read more Allergan stories.)

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