The opioid crisis stems from an increase in prescription opioids and illegal practices by opioid manufacturers and
sellers who misled healthcare providers and patients about the addictive nature of opioids and flooded the market with
an over-supply of opioids, helping create the crisis the country faces today. Through ongoing litigation and
investigative efforts, DOJ seeks to hold accountable opioid manufacturers, distributors, retail pharmacies, and
consulting and other firms that advised the pharmaceutical companies, all of which are alleged to have fueled the
crisis, and to bring funding and relief to affected communities nationwide.
- In November and December 2022, Attorney General Bonta announced national settlements with retail pharmacies Walmart, Walgreens, and CVS. Walmart settled for $3.1 billion, CVS for $5 billion, and Walgreens for $5.7 billion. These settlements also require the companies to make change to their business practices, including the creation of positions
responsible for ensuring the settlements' requirements for robust oversight to prevent fraudulent prescriptions and flag
suspicious prescriptions. These settlements, which require court approval, will be the first multistate settlements to
hold chain retail pharmacies to answer for their role in the opioid crisis.
- In July 2022, Attorney General Bonta announced national settlements with opioid manufacturers Teva and Allergan for
$6.6 billion. These settlements require the companies to make changes to their business practices, including prohibiting
opioid-related marketing by Teva and prohibiting Allergan from selling opioids for the next 10 years. The settlements
are currently pending court approval.
- In March of 2022, Attorney General Bonta announced a $6 billion conditional settlement with Pharma and the Sackler family over their alleged deceptive and illegal marketing and sales practices, in an agreement that would also allow the family's name to be removed from buildings, scholarships, and fellowships.
- Mallinckrodt, the largest generic opioid manufacturer in the United States, filed for bankruptcy protection in October 2020 and again in August 2023. As part of the bankruptcy, a trust was set-up for the benefit of private and public opioid creditors, including California. The trust received $700 million to resolve public and private claimants' opioid-related claims. The bulk of these funds will go to states and local governments for opioid abatement.
- In July 2021, Attorney General Bonta announced a $26 billion settlement, which was finalized in Spring 2022, with Johnson & Johnson, which manufactured and marketed opioids, and Cardinal Health, McKesson, and AmerisourceBergen, the nation's three major pharmaceutical distributors. It was the second largest multistate settlement in U.S. history, and its terms bar Johnson & Johnson from selling or promoting opioids for a decade and require the distributors to monitor, report, and share data about suspicious activity related to opioid sales.
- In February of 2021, the Attorney General announced a $573 million settlement with one of the world's largest consulting firms, McKinsey & Company. The settlement resolves a multistate investigation into the company’s role in advising opioid companies (including OxyContin maker Purdue Pharma) in the promotion and sale of their drugs.
These settlements are expected to bring in billions in funding for California communities, which will, among other
things, be used to:
- Increase support for substance-use disorder facilities and improve infrastructure for treatment.
- Address the needs of communities of color and vulnerable populations, including those who are unhoused.
- Strengthen availability of Naloxone (also known as NARCAN) or other FDA-approved overdose reversal drugs.
- Provide interventions for drug addiction in vulnerable youth and supporting those in the juvenile justice system with
treatment options.
- Improve training and resources for law enforcement and first responders regarding appropriate practices and
precautions when dealing with fentanyl or other drugs, including with regard to addressing the needs of criminal
justice-involved persons with opioid-use disorder and mental health issues.
- Implement best practices for outreach, diversion, and deflection.
- Support job creation programs to help connect those recovering from substance use disorders with gainful employment
and pathways to financial stability.
- Improve data-sharing and management systems to detect suspicious activity, including with regard to the prescription
of controlled substances.
Recent Opioid Litigation News
