Attorney General James donates up to $ 200 million to help fight opioid crisis in New York, Allergan pledges not to sell opioids
The funds would be paid in full by mid-2022,
Would be used for the treatment and prevention of opioids
AG James negotiated up to $ 1.7 billion
to deliver to NYS for opioid reduction
AG James lawsuit against last remaining opioid maker
Go to closing arguments today
NEW YORK – New York Attorney General Letitia James today announced a deal with opioid maker Allergan Finance, LLC and its subsidiaries that would provide up to $ 200 million to New York State to help fight the opioid crisis. The deal resolves claims by Attorney General James over the company’s role in helping fuel the opioid epidemic and requires the company to make full payment of the $ 200 million by the mid-2022 if certain conditions are met – of which more than $ 150 million will go towards opioid reduction. Since June alone, Attorney General James has negotiated to bring back up to $ 1.7 billion to fight the opioid epidemic. Today’s agreement also enforces a ban preventing Allergan and all of its subsidiaries, predecessors and successors from selling opioids in New York City and recognizes Allergan’s earlier exit from the opioid industry. As a result of today’s deal, Allergan will be withdrawn from the ongoing opioid trial in New York City, currently pending in the Suffolk County State Supreme Court.
“For more than two decades, opioids have wreaked havoc among New Yorkers and Americans across the country – causing pain, addiction and death,” said Attorney General James. âOur current essay has looked at the role companies like Allergan and its predecessors played in growing this epidemic, profiting while Americans were suffering. But today’s deal keeps Allergan out of the opioid industry for the next decade and charges the company up to $ 200 million. We have now negotiated up to $ 1.7 billion for essential opioid treatment, prevention and education programs. While no amount of money will ever make up for the thousands of people who lost their lives or became addicted to opioids in our state, those funds will be used to prevent further devastation.
In March 2019, Attorney General James filed the nation’s largest lawsuit to hold the various manufacturers and distributors responsible for the opioid epidemic accountable. In addition to Allergan, the manufacturers named in the complaint included Purdue Pharma and its affiliates, as well as members of the Sackler family (owners of Purdue) and the trusts they control; Janssen Pharmaceuticals and its subsidiaries (including its parent company Johnson & Johnson); Mallinckrodt LLC and its affiliates; Endo Health Solutions and its affiliates; and Teva Pharmaceuticals USA, Inc. and its subsidiaries. The distributors named in the complaint were McKesson Corporation, Cardinal Health Inc., Amerisource Bergen Drug Corporation and Rochester Drug Cooperative Inc.
As part of today’s deal, Allergan will pay New York State a total of $ 200 million if certain conditions are met.
In addition to this payment, Attorney General James negotiated a robust injunction. Allergan will be prohibited from promoting any opioids or opioid products through sales representatives, sponsorship, financial support, or any other means; will not be permitted to provide financial incentives to its sales and marketing employees for the sale of such products; and will not provide, directly or indirectly, financial or in-kind support to any third party who primarily engages in conduct that promotes opioids or opioid products.
Allergan will not be permitted to use, assist, or employ any third party to engage in any activity that Allergan itself would not be permitted to undertake under today’s agreement.
In addition, Allergan will be prohibited from lobbying any federal, state or local laws or regulations regarding opioids or opioid products.
Finally, Allergan will need to make additional information on opioids and opioid products more accessible to the public, including patients, healthcare providers and others. Allergan will share its clinical data with a third-party data center or platform owner to enable researchers qualified under the program to access proprietary data from the company under the terms of the project.
Today’s deal would further resolve the lawsuits against Allergan by the counties of Nassau and Suffolk if the county legislatures approve the deal. Meanwhile, Attorney General James filed a motion this morning to remove Allergan from the opioid trial in New York City.
In September, a deal was struck with Endo which has already provided $ 50 million to New York State, Nassau and Suffolk counties to tackle the opioid crisis and has pulled the opioid maker from l opioid trial underway in New York.
Additionally, in September, the Purdue bankruptcy court confirmed that a $ 4.5 billion plan – of which at least $ 200 million will be allocated to New York – from the Sackler family and the foundations they control. , would end the Sacklers’ ability to manufacture opioids again. , and will close Purdue Pharma.
In July, an agreement with McKesson, Cardinal Health and Amerisource Bergen that will provide up to $ 1 billion to New York State to fight the opioid epidemic was announced.
In June, a settlement ending the sale of opioids by Johnson & Johnson nationwide that will bring in $ 230 million in New York City alone was announced.
The deals with Johnson & Johnson, McKesson, Cardinal Health and Amerisource Bergen are worth around $ 26 billion overall.
The cases against Mallinckrodt and Rochester Drug Cooperative are now proceeding separately in the United States bankruptcy court.
The lawsuit against the last remaining defendant – Teva Pharmaceuticals USA – is currently ongoing, with oral argument scheduled to begin today.
Under the new law establishing the Opioid Settlement Fund, all funds raised by the state from opioid settlements or litigation wins will be specifically allocated to reduction efforts in communities devastated by the opioid epidemic. and will not go to the general state fund.
Separately, but in connection with his opioid work, last February Attorney General James co-led a coalition of nearly every attorney general in the country, issuing more than $ 573 million – including more than $ 32 million were destined for New York State – towards opioid treatment and reduction in an agreement and consent judgment with McKinsey & Company.
This settlement was negotiated by Senior Deputy Attorney General Jennifer Levy, Senior Advisor and Special Advisor Mr. Umair Khan, and Assistant Attorneys General Carol Hunt and Noah Popp. The settlement was also prompted by the work of Senior Enforcement Counsel John Oleske and Special Counsel Monica Hanna, as well as Deputy Attorneys General Conor Duffy, Diane Johnston, Leo O’Toole, Jeremy Pfetsch, Larry Reina, Michael Reisman, Lois Saldana, and Louis Testa; project lawyers Wil Handley, Stephanie Torre and Eve Woodin; Paralegal Ketty Dautruche; Legal Assistant David Payne; director of research and analysis Jonathan Werberg; Data Scientist Gautam Sisodia; Data Analyst Anushua Choudhury; IT specialists Hewson Chen and Paige Podolny; Kristin Petrella, Electronic Discovery Document Review Specialist; and former opioid and impact litigation lawyer David Nachman.