TRENTON – Acting Attorney General Andrew Bruck Aug. 20 announced $26 billion in settlements with three drug companies and Johnson & Johnson over their role in the opioid crisis that has plagued the state.
The settlements resolve claims that the companies encouraged and fomented the opioid crisis across the nation.
The settlement would have the three drug distribution companies – McKesson, Cardinal Health, and AmerisourceBergen – pay $21 billion and Johnson & Johnson $5 billion. Johnson & Johnson will also agree to stop selling opioids.
The settlements resolve over 4,000 lawsuits. Bruck estimates that New Jersey should receive over $600 million of the settlement funds.
In addition, New Jersey settled in January with John Kapoor, founder of Insys Therapeutics, for $5 million.
This was followed in February with a settlement with the global consulting firm McKinsey and Company, which, nationwide, will result in $573 million in payments, of which New Jersey expects around $16 million. McKinsey was sued over its development of aggressive marketing strategies to push opioid sales and use.
In July, New Jersey joined a global resolution of litigation against the Sackler family and their company, Purdue Pharma. The estimate is that New Jersey should receive $110 million from that settlement. Purdue’s $4.5 billion bankruptcy settlement plan was approved by the courts Sept. 1.
Many of these settlements involve multiple state and other jurisdiction approvals and actions, which may take time.
Bruck indicated that most of the funds received will go to a program aimed at opioid prevention and treatment.
