What you should know
- The New York attorney general’s office said the agreement they reached prohibits Johnson & Johnson from promoting opioids through any medium and prohibits lobbying on such products at the federal, state or local level.
- However, Johnson & Johnson confirmed that it had already gone out of business. As part of the settlement, the company will resolve opioid-related claims and allocate payments for nine years.
- The settlement comes after years of lawsuits by states, cities and counties against major drug companies over the opioid crisis, which has claimed the lives of nearly 500,000 people in the U.S. since 1999.
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NEW YORK – Johnson & Johnson has reached a $ 230 million settlement with New York State that prohibits the company from promoting opioids and confirmed that it has terminated distribution of such products within the United States.
The New York Attorney General’s Office Letitia James said in a statement Saturday that the agreement prohibits Johnson & Johnson from promoting opioids by any means and prohibits lobbying on such products at the federal, state or local level.
Johnson & Johnson has not marketed opioids in the US since 2015 and completely discontinued the business in 2020.
As part of the settlement, the company will resolve opioid-related claims and allocate payments for nine years. It could also pay $ 30 million more in the first year if the state Executive Chamber enacts new legislation creating an opioid settlement fund, according to the press release from James’ office.
The settlement comes after years of lawsuits by states, cities and counties against major drug companies over the opioid crisis, which has killed nearly 500,000 people in the United States in the past two decades.
Governments have argued that companies overprescribe drugs, causing people to become addicted and abuse other illegal forms of opioids, while companies have said they have distributed the necessary amount of the product to help people with medical problems.
“The opioid epidemic has wreaked havoc in countless communities in New York State and the rest of the nation, leaving millions still addicted to dangerous and deadly opioids,” James said in a statement.
“Johnson & Johnson helped fuel this fire, but today they are pledging to get out of the opioid business, not just in New York, but across the country,” he said. “Johnson & Johnson will no longer manufacture or sell opioids in the United States.”
The New York opioid trial against the rest of the defendants will begin this week, according to the statement. Other defendants in the New York lawsuit include Purdue Pharma, Mallinckrodt LLC, Endo Health Solutions, Teva Pharmaceuticals USA, and Allergan Finance LLC.
In a statement Saturday, Johnson & Johnson said the settlement “is not an admission of liability or wrongdoing on the part of the company” and is “consistent with the terms of the total settlement agreement of $ 5 billion previously announced in principle for resolving opioid lawsuits and claims from states, cities, counties, and tribal governments. “
The company also said it would continue to defend itself against any lawsuit that the final settlement does not resolve.
James said the state will focus on funding opioid prevention, treatment and education efforts in order to “prevent any future devastation.”
It is Article was originally published in English by Emma Newburger for our sister chain CNBC.com. For more from CNBC enter here.
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