Distributors and Janssen/J&J Settlements
Tennessee has joined a broad coalition of states and subdivisions in reaching a $26 billion settlement with four companies to resolve legal claims for their role in the opioid crisis. Tennessee’s share of the settlement funds is expected to exceed $600 million over 18 years. The settlement consists of two agreements. One agreement is with the three major pharmaceutical distributors: AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson Corporation. The second agreement is with an opioid manufacturer: Janssen, a subsidiary of Johnson & Johnson.
To become effective, a critical mass of states and political subdivisions must agree to participate in the settlements. Tennessee has joined a substantial majority of states in agreeing to participate and the companies have determined that there is sufficient state joinder to move forward with the subdivision sign-on period. Subdivisions will have until January 2, 2022 to become initial participating subdivisions.
In addition to the two settlement agreements, subdivisions are encouraged to join the Tennessee State-Subdivision Opioid Abatement Agreement. This Tennessee-specific agreement, negotiated with representatives of the state’s subdivisions, addresses the allocation provisions in the two settlements and sets out a structure for the distribution of abatement funds from pending bankruptcy plans.
Settlement Documents and Related Materials
- Attorney General Slatery Leads $26 Billion Agreement with Opioid Distributors/Manufacturer (July 21, 2021)
- Distributor Settlement Agreement (September 18, 2021)
- Janssen/J&J Settlement Agreement (July 30, 2021)
- In anticipation of these settlements, the General Assembly passed legislation earlier this year that addresses certain settlement funds that are committed to abating the opioid crisis. The legislation, which was signed by Governor Bill Lee, includes provisions creating an Opioid Abatement Trust Fund and Opioid Abatement Council: Public Chapter 0491
- Tennessee State-Subdivision Opioid Abatement Agreement
- Tennessee Abatement Fund Initial County Allocation Percentages (This is the table referenced in the Tennessee State-Subdivision Opioid Abatement Agreement, Exhibit A, Section F.)
- Tennessee Opioid Settlement Executive Summary for Tennessee Subdivisions
- Tennessee Opioid Settlement FAQs for Tennessee Subdivisions (Please note that this document includes references to Exhibit G in the J&J Settlement Agreement, which has not yet been provided by the company.)
- Tennessee Opioid Settlement Model Resolution for Subdivisions (This model resolution was drafted by subdivisions and should be modified to fit each subdivision and its requirements for such acts.) ...click here for the Microsoft Word version.