TBA Law Blog

Posted by: Kate Prince on Jul 21, 2021

Tennessee Attorney General Herbert Slatery today announced that state and local governments are on the verge of signing a $26 billion agreement with the nation’s three largest pharmaceutical distributors and drugmaker Johnson & Johnson for their role in the nation’s opioid crisis. Per the agreement, distributors Cardinal, McKesson, and AmerisourceBergen will pay up to $21 billion over 18 years and must establish new systems to help prevent and identify suspicious opioid orders. Johnson & Johnson will pay up to $5 billion over nine years and must stop selling opioids for 10 years. Over two-thirds of the settlement money is required to be spent on opioid treatment and prevention The agreement hinges on a “critical mass” of participation from states and local governments. According to the Tennessean, states have 30 days to join the deal and local governments have five months. If governments don’t opt in, the settlement total will go down. Slatery, who has been a leader in the settlement efforts, said Tennessee will be signing the agreement and reaching out to encourage participation.