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LEGAL NEWSLINE

Saturday, September 21, 2024

Johnson & Johnson pays Washington State governments $123M following AG Ferguson's opioid lawsuit

State AG
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Attorney General Bob Ferguson | Official Website

Attorney General Bob Ferguson announced that Washington state, city, and county governments received a $123.34 million payment from Johnson & Johnson as part of the state's litigation against companies involved in the opioid crisis. The funds are to be split evenly between state and local governments and used to combat the opioid epidemic.

To avoid trial in Ferguson’s 2020 lawsuit, Johnson & Johnson agreed in January to pay $123.34 million to Washington state. Ferguson specified that half of these resources, amounting to $61.67 million, will go to local governments, while the other half will be allocated by the state Legislature.

Ferguson's office has recovered $1.29 billion so far for addressing the fentanyl and opioid crisis. Local governments will decide how to use their share within guidelines aimed at combating these epidemics, while the Legislature will allocate the state's portion according to the state Opioid Response Plan.

"We stood up to some of the world’s largest corporations that fueled the epidemic in pursuit of profit – and we won more than $1 billion that will help communities recover from the opioid crisis," Ferguson said. "My team continues to hold these corporations accountable and deliver critical resources."

Washington is one of three states receiving more from its resolution with Johnson & Johnson than under a 2021 multistate resolution which would have provided $98.9 million over nine years. Instead, Washington secured $149.5 million, including $26.16 million for case costs.

The Attorney General’s Office still has pending litigation against two national pharmacy chains involved in fueling the epidemic.

From the 1990s through at least 2016, Johnson & Johnson's subsidiaries cultivated opium poppy plants and processed them into raw narcotic materials for opioid drugs production both for their own use and sale to other manufacturers. By 2015, they were a top U.S supplier of active pharmaceutical ingredients for opioids.

Johnson & Johnson's marketing strategies overstated long-term effectiveness of opioids for pain treatment while understating addiction risks. They promoted opioids for chronic pain conditions despite evidence suggesting ineffectiveness for such treatments through branded marketing and third-party organizations funded by them like American Pain Foundation.

This year, over $52.3 million recovered from previous resolutions with opioid companies was appropriated by the Legislature to fund programs combating the opioid epidemic.

Ferguson has previously rejected national settlements with five corporations, securing more than $180 million additional funds for Washington compared to national deals offered.

In 2022 alone, settlements included Purdue Pharma agreeing to pay $183 million pending bankruptcy court approval and a combined settlement of $518 million from McKesson Corp., Cardinal Health Inc., and AmerisourceBergen Drug Corp.—$46 million more than what a national settlement would have provided.

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Washington’s Attorney General serves as legal representation for all state agencies in Washington while enforcing consumer protection laws among others.

For more information visit www.atg.wa.gov

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