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Opioid Settlements

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