On June 26, New York Attorney General Letitia James today announced an agreement with Johnson & Johnson (J&J) — the parent company of Janssen Pharmaceuticals, Inc. — that will deliver up to $230 million to New York state, in the largest monetary settlement ever secured by Attorney General James. The agreement resolves claims made by Attorney General James for the company’s role in helping to fuel the opioid epidemic and would allocate payments over nine years, with substantial payments made upfront.
The agreement also makes enforceable a bar stopping J&J and all of its subsidiaries, predecessors, and successors from manufacturing or selling opioids anywhere in New York, and acknowledges Johnson & Johnson’s exit from the opioid business nationally.
“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,” said Attorney General James. “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. We are also delivering up to $230 million to fund opioid prevention, treatment, and education efforts across New York state. While no amount of money will ever compensate for the thousands who lost their lives or became addicted to opioids across our state or provide solace to the countless families torn apart by this crisis, these funds will be used to prevent any future devastation. Our trial against the remaining defendants will commence this coming week, where we will lay bare the callous and deadly pattern of misconduct these companies perpetrated as they dealt dangerous and addictive opioids across our state. As always, our goal remains getting funds to those devastated by opioids as quickly as possible.”
In March 2019, Attorney General James filed the nation’s most extensive lawsuit to hold accountable the various manufacturers and distributors responsible for the opioid epidemic. In addition to J&J, the manufacturers named in the complaint included Purdue Pharma and its affiliates, as well as members of the Sackler Family (owners of Purdue) and trusts they control; Mallinckrodt LLC and its affiliates; Endo Health Solutions and its affiliates; Teva Pharmaceuticals USA, Inc. and its affiliates; and Allergan Finance, LLC and its affiliates. The distributors named in the complaint were McKesson Corporation, Cardinal Health Inc., Amerisource Bergen Drug Corporation, and Rochester Drug Cooperative Inc.
The cases against Purdue Pharma (and subsequently the Sackler family), Mallinckrodt, and Rochester Drug Cooperative are all now moving separately through U.S. Bankruptcy Court. The trial against all other defendants is currently slated to begin this coming week.
Largest Monetary Recovery in Attorney General James’ Tenure
As part of today’s agreement, J&J will pay New York state a total of up to $229,862,769.25, with payments made over the course of nine years. The schedule of those payments will depend on a number of circumstances, including how many of the state’s political subdivisions accept and choose to participate in today’s agreement, as well as whether the state’s executive chamber signs legislation — approved earlier this month — that creates an opioid settlement fund. The bill creating the opioid settlement fund is currently with the executive chamber, and would ensure payments for New York state under any opioid settlement or through litigation would be earmarked towards prevention, treatment, education, and other forms of abatement, instead of towards the state’s general fund.
Johnson & Johnson’s Ends its Sale of Opioids Nationwide
In addition to negotiating the largest monetary settlement since she took office, Attorney General James negotiated substantial injunctive relief securing the end of J&J’s manufacturing of opioids and their distribution across New York and the rest of the nation. J&J has committed to ending the manufacture and sale of all opioids and opioid products for distribution in the state of New York, as well as to no longer ship these products anywhere within the United States.
Separately, but related to her work on opioids, in February, Attorney General James co-led a coalition of nearly every attorney general in the nation in delivering more than $573 million — more than $32 million of which was earmarked for New York state — toward opioid treatment and abatement in an agreement and consent judgment with McKinsey & Company. The agreement with one of the world’s largest consulting firms resolved investigations by the attorneys general into the company’s role in working for opioid companies, helping those companies promote their drugs, and profiting millions of dollars from the opioid epidemic.
