NYS getting $1B from opioid pharma payout

New York Attorney General Letitia James said Friday final approval has been granted for $17.3 billion in settlements with drugmakers and pharmacies over the opioid crisis.

The approvals resolve cases from multiple states accusing Teva Pharmaceuticals and Allergan as well as CVS and Walgreens of downplaying the risk of painkillers and perpetuating the deadly opioid epidemic.

The settlement deals will take effect in the coming weeks, and the settlement funds will start becoming available to state and local governments by the end of the year.

New York state is set to receive more than $1 billion and has already started receiving payments from Teva for the trial premium as part of the state’s previous landmark liability verdict against the company, the AG’s office said.

The latest settlements close lawsuits against most of the major players and bring the total funds that states will get from opioid litigation to about $50 billion.

The funds are distributed to states by population adjusted to account for the burden of the opioid epidemic based on deaths and people using drugs. The agreements require most of the money to be spent on abating the opioid crisis, but the parameters are broad and officials are using different strategies to spend it.

States are crafting plans that include buying treatment medications to help people with opioid abuse disorder, funding health clinics and giving law enforcement more resources.

“These funds will help with opioid abatement, education and treatment efforts in our communities,” James said.