Settlement Reached in Opioid Suit as Negotiations Continue in CA
July 22, 2021
California Attorney General Rob Bonta announced a historic $26 billion settlement that will help bring desperately needed relief to people in California and across the country who are struggling with opioid addiction. The settlement includes Cardinal, McKesson, and AmerisourceBergen – the nation’s three major pharmaceutical distributors – and Johnson & Johnson, a company that manufactured and marketed opioids. Read CSAC’s full response to the announcement here.
“These critical settlement funds are desperately needed to help California’s local communities heal from the severe devastation caused by opioids,” said Graham Knaus, Executive Director of the California State Association of Counties. “We are optimistic and confident that the Attorney General’s Office will negotiate and reach an agreement that provides funding and resources for counties and local communities to address this crisis.”
Upon the news of this national settlement, California’s Counties renew their ongoing commitment to working with the California Attorney General to reach an intrastate allocation agreement. Without such an agreement, counties cannot access funds from this national settlement, even though they are tasked with providing substance use disorder and prevention services on behalf of the state. California’s cities and counties have been in negotiations with the Attorney General’s office since last year, including thwarting legislative efforts to cut local governments out of the national settlement negotiations.
The settlement comes at a critical time to address the addiction and prevention needs of residents, as drug overdose deaths in the U.S. rose nearly 30 percent in 2020, according to preliminary data from the Centers for Disease Control.