Opioid litigation settlements are coming at a rapid pace, with the latest deal valued at $590 million dollars between more than 400 Native American tribes and opioid maker Johnson & Johnson, and three of the nation’s largest drug distributors. Native American communities, which were hard hit by the opioid crisis, accused the companies of fueling the crisis, causing tribal governments to spend millions of dollars in healthcare, social services, and other costs. The deal follows a separate $26 billion settlement last year between the same companies and state and local governments, which were among some 3,300 lawsuits blaming the wholesalers for failing to monitor shipments and J& of downplaying the risk of highly-addictive opioids.
As part of the settlement, the wholesalers — McKesson, AmerisourceBergen, and Cardinal Health— will pay nearly $440 million over seven years, while the Janssen unit at Johnson & Johnson agreed to $150 million over two years. This is a significantly faster timetable than in previous settlements with states and local governments. By contrast, the drug manufacturer will pay thousands of local governments and states $5 billion over nine years, with the distributors paying $21 billion over 18 years. The money will go to tribal governments for education, prevention, and treatment programs that have been sorely lacking within the Indian health service.
Native Americans suffered the highest per capita rate of opioid overdoses, the highest drug overdose death rates in 2015, and the largest percentage increase in the number of deaths over time from 1999 to 2015 compared to other racial and ethnic groups, according to federal government data and statements made at a congressional hearing. Even as settlements are made, the addiction and overdose crisis continues, with more than 100,000 Americans dying of an overdose in the 12-month period ending this April. While the settlement money is welcome, and will eventually help slow the rate of fatalities, we also need massive government funding now to confront this ongoing public health crisis.