J & J reaches opioid settlement on holdout in New Mexico

File Photo: The Johnson & Johnson logo will appear on the screen of the New York Stock Exchange floor.Reuters / Brendan MacDermid

January 14, 2022

Nate Raymond

(Reuters)-Johnson & Johnson said Friday that it had agreed to pay $ 44 million to resolve allegations that contributed to the opioid epidemic in New Mexico.

The drug company proposes that $ 44 million will be paid by J & J and drug distributors McKesson Corporation, AmerisourceBergen Corporation, and Cardinal Health, Inc. to resolve the case nationwide up to $ 26 billion. He said it was in line with the conditions.

New Mexico’s Attorney General Hector Balderas initially refused to participate in these settlements, but last month said the state would participate in a $ 21 billion deal for distributors. But he wasn’t involved in J & J’s $ 5 billion deal at the time.

Under Friday’s agreement, J & J agreed to pay New Mexico a share of the national settlement in 2022, rather than a few years, if all cities and counties signed by May 31. ..

“Opioids have destroyed families in New Mexico, and community and addiction experts still need significant funding to save lives and fight this ongoing tragic epidemic,” Valderas said. Said in a statement.

More than 3,300 proceedings, primarily by state and local governments, are pending, attempting to hold these and other companies accountable for the opioid abuse crisis that led to the deaths of hundreds of thousands of overdose. increase.

The amount of $ 26 billion that a company ultimately has to pay and the amount of unresolved proceedings it faces depends on the participation of state and local governments.

Proponents of the settlement recently extended the deadline for state cities and counties to January 26, which favored the proposal to opt in to the transaction because of the potential for more states to participate.

Nevada and Georgia have agreed to join this month. The six states are not reconciled with some or all of the four companies.

(Report by Nate Raymond of Boston, edited by Leslie Adler and Jonathan Oatis)

J & J reaches opioid settlement on holdout in New Mexico

Source link J & J reaches opioid settlement on holdout in New Mexico

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