Update: July 24, 9:30 a.m.
Comment from Anne Constantino, president and CEO of Horizon Health Services, which has an office in Batavia:
“We are grateful to the Attorney General for her success in this settlement that will absolutely deliver much needed resources in our efforts to prevent, combat and treat the serious public health crisis of addiction.”
The executive director of a local substance use prevention and treatment agency is hailing today’s announcement that four major pharmaceutical distributors are close to an agreement to pay out $26 billion to states and municipalities for their roles in perpetuating the nation’s opioid epidemic.
“Yes, this is welcome news and I’m just hoping the money ends up going to assist individuals and families struggling with opioid addiction,” said John Bennett, executive director of Genesee/Orleans Council on Alcoholism and Substance Abuse. “It definitely is needed to stabilize the treatment system that has been impacted negatively by the recent pandemic.”
According to multiple media outlets, Johnson & Johnson, Cardinal Health, McKesson and AmerisourceBergen are near a deal that would resolve multiple legal challenges as well as pay for prevention, treatment and recovery services throughout the United States.
Genesee County Attorney Kevin Earl said it will be awhile before it is known how much money will be allocated locally.
The New York City law firm of Napoli Shkolnik PLLC is representing Genesee County as well as several other counties, Earl said.
“Most of the particulars are up in the air right now,” Earl said. “The county has retained this law firm to represent us in the litigation and they have advised us of the settlement with three of the distributors and Johnson & Johnson, but it’s too early to tell what Genesee County or any other participant in the litigation will get.”
A published report in today’s online edition of The New York Times indicates that the pact has yet to be finalized and “could still fall apart or have significant changes.”
The Times’ story also included the following:
-- According to lawyers familiar with negotiations, Johnson & Johnson, which made an opioid painkiller and a fentanyl patch and supplied opium-based ingredients to other drug manufacturers, would pay $3.7 billion in the first three years and $1.3 billion over the next six years. It had already shut down its supply business and discontinued its opioids, and agreed to refrain from selling opioids.
-- The distributors as well as several manufacturers are in the midst of a trial in a case brought by the State of New York and two of its counties. This morning, Letitia James, the attorney general for New York, announced a $1.1 billion deal with the distributors to settle that case. That money would be a part of the overall $26 billion settlement, but so far, it is the only deal that has been formally agreed to. Payments to New York State could begin in two months, Ms. James said.
Genesee County Manager Matt Landers said he was “fairly certain” that the money awarded to the county is for specific purposes, unlike the tobacco settlement, which gave counties more leeway to use the money for general operations.
“This money would have to go towards specifically combatting opioids,” he said. “So, it would lead to us partnering with agencies in the community to help deliver these services – agencies such as GCASA and others.”
Marcus Molinaro, president of the New York State County Executives Association, said in a press release that the settlement “comes at a crucial moment as counties across the state and nation grapple with a startling resurgence in overdose deaths.”
“No amount of money can bring back the lives lost to the opioid epidemic, but it can honor those lost by investing in prevention, education and treatment services to save lives,” he said.
“New York’s county executives were proud to work in collaboration with Attorney General Letitia James to pass legislation creating an Opioid Settlement Fund to ensure those most responsible for plunging us into this crisis, and not local taxpayers, pay for treatment, recovery, and abatement efforts critical to defeating this deadly scourge.”