COLUMBUS, Ohio — Two of the nation's largest drug makers along with two of its biggest pharmacies have agreed to pay $679.6 million to the state of Ohio as part of a massive settlement over their roles in the ongoing opioid crisis.
The deal is related to a bevy of lawsuits brought by attorneys general in 22 states, with overall payouts from Teva, Allergan, CVS, and Walgreens expected to total $17.3 billion. Ohio AG Dave Yost says his state's portion of the settlement will be received over 15 years, with payments expected to begin by the end of this year.
"Too many companies chose not to recognize and take action to prevent the burgeoning opioid crisis that now continues to plague our streets," Yost said in a statement. "We, and they, have a moral obligation to help not hinder those that need assistance and this money will be used statewide for just that – recovery and relief."
Drug companies and pharmacies have shouldered much of the blame for America's opioid epidemic, with critics saying the overprescription of certain drugs caused millions of people to become addicted to various drugs while leading to hundreds of thousands of overdose deaths. The situation got so bad that in 2017, then President Donald Trump declared it to be a public health emergency, allowing the use of additional federal resources to combat the crisis.
Under guidelines finalized years ago, 55% of Ohio's settlement portion will go towards its OneOhio Recovery Foundation, while 30% will go to local governments and another 15% directly to the state. The companies' individual payouts are as follows:
- $224.3 million over 15 years from Walgreens
- $206.3 million over 10 years from CVS
- $156 million over 13 years from Teva
- $93 million over seven years from Allergan
As part of the agreement, Allergan has been ordered to stop selling opioids for the next 10 years, while Teva is forever banned from marketing its opioid products. CVS and Walgreens must also "monitor, report and share data about suspicious activity related to opioid prescriptions."
Ohio has already reached more than $1 billion in settlements with other distributors and pharmacies, and a proposed $114 million deal with Walmart is currently pending. In addition, Lake and Trumbull counties won $650 million from their own landmark lawsuit against CVS, Walgreens, and Walmart, while also reaching settlements with Rite Aid and Giant Eagle.