New Jersey announces next steps in $508M opioid settlement process

Matthew Fazelpoor//May 4, 2023//

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New Jersey announces next steps in $508M opioid settlement process

Matthew Fazelpoor//May 4, 2023//

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Gov. Phil Murphy and Attorney General Matthew Platkin announced May 3 that all eligible counties and municipalities have signed onto nationwide settlement agreements related to the U.S. opioid crisis.

In January, New Jersey joined the contract with pharmacy chains CVS, Walgreens and Walmart, and drug makers Teva Pharmaceuticals and Allergan, agreeing to pay as much as $20.1 billion to resolve their alleged roles in helping to fuel the epidemic.

As part of the agreements, New Jersey and eligible counties stood to receive up to $508.1 million.

The state gave eligible counties (all 21) and municipalities (241 of the state’s more than 500) until May 2 to sign on. Since New Jersey achieved 100% participation among those localities, it is on track to receive the maximum amount available under the settlements.

“While thousands of New Jerseyans have lost their lives to the opioid epidemic and thousands of others continue to struggle with opioid addiction, these large corporations and drug makers profited from the pain and struggle of our communities. While this settlement does not bring our loved ones back, it will bring resources to the state that will support programs and initiatives that save lives,” said Murphy, who credited the work of Platkin and his office for delivering these settlements to the state.

Teva, Allergan, CVS and Walgreens are expected to announce by June 1 whether their agreements will go forward, depending on if enough state subdivisions from around the country have signed on. The Walmart settlement becomes effective on its own terms as long as sign-on is achieved by a certain threshold.

Adding up

Teva Pharmaceuticals, which has its U.S. headquarters in Parsippany, has also settled with multiple states over price-fixing claims, which the company says it continues to deny. Click here to read the latest.

The settlement funds that New Jersey stands to receive will be split 50/50 between the state and its eligible counties and municipalities, stemming from a Memorandum of Understanding (MOU) between the state and local governments on Opioid Litigation Recoveries. That MOU establishes binding terms for the distribution and spending of funds from any national opioid litigation resolution and is applicable by its terms to these five settlement agreements.

In New Jersey, the sign-on required a lot of work and coordination between the Murphy Administration, the New Jersey State League of Municipalities and the New Jersey Association of Counties (NJAC).

New Jersey Attorney General Matthew Platkin
Platkin

“I thank the counties and municipalities across New Jersey for working with us to ensure our state is on track to receive the maximum available funding from these settlements,” said Platkin. “No amount of money can bring back the lives lost or undo the suffering caused by the addiction epidemic, but the funding we receive will provide critical support through prevention, treatment, and recovery services and programs that help us heal and move forward.”

“This funding will be critical to fund services to address the devastating impact of in our communities,” said League President Raymond Heck, and mayor of Millstone Borough, who highlighted the coordination between at the state, county and municipal level. “Local governments will put this funding towards education, relief, and preemptive services. It takes a full-court effort from all levels of government to address this scourge and we’re honored to be part of these efforts.”

“The New Jersey Association of Counties (NJAC) commends Attorney General Platkin for his steadfast commitment to combatting the opioid crisis and leadership in securing vital resources that county governments across the state will use to provide critical support for those in need,” said John Donnadio, executive director, NJAC.

The state has set up an online portal to solicit funding recommendations. And, beginning May 4, the Opioid Recovery and Remediation Fund Advisory Council will host a series of public listening sessions. More details can be found here.

Health Commissioner Judith Persichilli
Persichilli

“No one is immune from the opioid epidemic that continues to ravage through our communities and claims over 3,000 lives each year in New Jersey,” said New Jersey Health Commissioner Judith Persichilli. “The opioid settlement funds will put accountability into practice, supporting prevention efforts and expanding access to care, treatment and recovery programs for individuals and families struggling with substance use disorder.”