Opioid Settlements

Purdue/Sackler Settlement

Tennessee has joined a nationwide coalition of states, local political subdivisions, and other Purdue Pharma creditors in reaching a $7.4 billion nationwide settlement with Purdue Pharma and the Sackler family. The settlement, set out in multiple agreements, resolves the Purdue Pharma bankruptcy and settles the Sackler family’s opioid liability.  If full incentives are earned and estate distributions estimates are correct, Tennessee and its subdivisions could receive up to $122 million over 15 years. The agreements are subject to the bankruptcy plan and the settlement agreements becoming effective. A critical mass of subdivisions must join the Governmental Entities & Shareholder Direct Settlement Agreement (“GESA”) for the settlement to move forward. Tennessee subdivisions now have until September 30, 2025, to join the GESA. Links to the Settlement Agreement, a proposed amendment to the Tennessee State-Subdivision Agreement, and other relevant documents are set out below.

Settlement Agreement

Summaries and Additional Information:

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Secondary Manufacturer Settlements

Tennessee has joined a nationwide coalition of states and local political subdivisions in reaching a set of settlements with eight additional manufacturers of opioids with payments totaling $720 million nationwide. These agreements resolve the companies’ opioid liability stemming from their manufacture of opioid-based pharmaceutical drugs.  Assuming full subdivision participation, Tennessee and its subdivisions are slated to receive more than $19.4 million. Tennessee subdivisions now have until October 8, 2025, to join these agreements. The Settlement Agreements, a proposed amendment to the Tennessee State-Subdivision Agreement, and other relevant documents are below.

Settlement Agreements:

Summaries and Additional Information:

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Kroger Settlement

Tennessee has joined a broad coalition of states and local political subdivisions in reaching a $1.2 billion nationwide settlement with Kroger.  This agreement settles Kroger’s opioid liability stemming from its operation of retail pharmacies at its grocery stores.  Under the settlement, Tennessee and its subdivisions are slated to receive more than $42 million.  During the process of joining the agreement, Tennessee subdivisions also approved two amendments to the Tennessee State-Subdivision Opioid Abatement Agreement to have it apply to the Kroger settlement and to clarify some language.  You may find the Settlement Agreement and other relevant documents, below:

Settlement Agreement

Summaries and Additional Information:

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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). A critical mass of political subdivisions have joined the settlements and all five agreements are now effective. There is a separate settlement agreement for each company:

● Amendment to State-Subdivision Agreement: In addition to joining the new settlements, in : 2023 subdivisions approved amendments to the Tennessee State-Subdivision Opioid Abatement Agreement. The State-Subdivision Agreement with the 2023 amendments attached to the end of the document is here: TN State-Subdivision Agreement with 2023 Amendments. Information on the amendments can be found here:  2023 Amendment Summary.

● Declaration of a Statewide Opioid Settlement Agreement Release for Second Wave Settlements: The Declaration of a Statewide Opioid Settlement Agreement Release for the settlements with Allergan Finance, LLC, CVS Health Corporation, Teva Pharmaceutical Industries Ltd, Walgreen Co., and Walmart, Inc. can be found here: Declaration of a Statewide Opioid Settlement Release for Allergan, CVS, Teva, Walgreens and Walmart.

● 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