Opioid Settlements

Food City Settlement

Tennessee and K-VA-T Food Stores, which does business as Food City, have reached a $44.5 million state-wide settlement agreement to resolve claims related to opioids. A group of political subdivisions litigating against the company participated in negotiations and are also parties to the settlement. A copy of the settlement agreement and additional information regarding the settlement can be found below:

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Second Wave:  New Settlements with Five Additional Companies

Tennessee has joined a broad coalition of states and local political subdivisions in reaching nationwide settlements with two additional manufacturers (Allergan and Teva) and three national pharmacy chains (CVS, Walgreens, and Walmart). If all five of the “second wave” settlements are fully adopted nationally, the maximum payments to Tennessee and its qualifying local governments would be more than $490 million. Most states have joined the settlements, but for the agreements to become effective, a critical mass of political subdivisions must sign onto the settlements by April 18, 2023. There is a separate settlement agreement for each company:

● Amendment to State-Subdivision Agreement: In addition to joining the new settlements, subdivisions are being asked to approve amendments to the Tennessee State-Subdivision Opioid Abatement Agreement. (A link to the agreement can be found below). Information on the proposed amendments can be found here: 2023 Amendment Summary.

● Summaries and Additional Information: Additional information about the settlements can be found on the national opioid settlement website. Two high-level one-page summaries for Tennessee subdivisions are below and additional materials will be added shortly.

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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.

As of January 27th, 2022, 51 states and territories and more than 7,000 local governments signed on to the agreements.  

In Tennessee, more than 150 local governments have joined, including every county and all cities with populations of 25,000 or more.

On February 25, 2022, the companies announced that the participation levels were sufficient for settlements to become effective.

In addition to the two settlement agreements, there is also a 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. The agreement has been adopted by the state and its subdivisions.

News

Settlement Documents and Related Materials