Second Wave: New Settlements with Five Additional Companies
Tennessee has joined a broad coalition of states and local political subdivisions in reaching nationwide settlements with two additional manufacturers (Allergan and Teva) and three national pharmacy chains (CVS, Walgreens, and Walmart). If all five of the “second wave” settlements are fully adopted nationally, the maximum payments to Tennessee and its qualifying local governments would be more than $490 million. Most states have joined the settlements, but for the agreements to become effective, a critical mass of political subdivisions must sign onto the settlements by April 18, 2023. There is a separate settlement agreement for each company:
- Allergan Settlement Agreement (2/8/23 update)
- Teva Settlement Agreement (2/8/23 update)
- CVS Settlement Agreement (2/3/23 update)
- Walgreens Settlement Agreement (12/9/22)
- Walmart Settlement Agreement (2/7/23 update)
● Amendment to State-Subdivision Agreement: In addition to joining the new settlements, subdivisions are being asked to approve amendments to the Tennessee State-Subdivision Opioid Abatement Agreement. (A link to the agreement can be found below). Information on the proposed amendments can be found here: 2023 Amendment Summary.
● Summaries and Additional Information: Additional information about the settlements can be found on the national opioid settlement website. Two high-level one-page summaries for Tennessee subdivisions are below and additional materials will be added shortly.
- TN 2nd Wave Settlements – County One-Page Summary
- TN 2nd Wave Settlements – Municipality One-Page Summary
- TN 2nd Wave Settlements – Model Resolution for Subdivisions
- Guide for Local Governments – Information about the new settlements and payments for existing settlements.
Distributors and Janssen/J&J Settlements
Tennessee has joined a broad coalition of states and subdivisions in reaching a $26 billion settlement with four companies to resolve legal claims for their role in the opioid crisis. Tennessee’s share of the settlement funds is expected to exceed $600 million over 18 years. The settlement consists of two agreements. One agreement is with the three major pharmaceutical distributors: AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson Corporation. The second agreement is with an opioid manufacturer: Janssen, a subsidiary of Johnson & Johnson.
As of January 27th, 2022, 51 states and territories and more than 7,000 local governments signed on to the agreements.
In Tennessee, more than 150 local governments have joined, including every county and all cities with populations of 25,000 or more.
On February 25, 2022, the companies announced that the participation levels were sufficient for settlements to become effective.
In addition to the two settlement agreements, there is also a Tennessee State-Subdivision Opioid Abatement Agreement. This Tennessee-specific agreement, negotiated with representatives of the state’s subdivisions, addresses the allocation provisions in the two settlements and sets out a structure for the distribution of abatement funds from pending bankruptcy plans. The agreement has been adopted by the state and its subdivisions.
- Attorney General Slatery: Opioid Distributors and Johnson & Johnson Commit to $26 Billion Agreement (February 25, 2022)
- Attorney General Slatery: Important Progress on $26 Billion Opioid Agreement (January 27, 2022)
- Joint Statement from Leadership States on the Progress of the $26 Billion Multistate Opioid Agreement (January 27, 2022)
- Attorney General Slatery Leads $26 Billion Agreement with Opioid Distributors/Manufacturer (July 21, 2021)
Settlement Documents and Related Materials
- Distributor Settlement Agreement (Exhibits updated April 29, 2022)
- Janssen/J&J Settlement Agreement (March 31, 2022)
- In anticipation of these settlements, the General Assembly passed legislation in 2021 that addresses certain settlement funds that are committed to abating the opioid crisis. The legislation, which was signed by Governor Bill Lee, includes provisions creating an Opioid Abatement Trust Fund and Opioid Abatement Council: Public Chapter 0491. The legislation also promoted the facilitation of statewide opioid settlement agreements with these companies by establishing a process for the release of governmental claims through a declaration of a statewide opioid settlement agreement. Tenn. Code Ann. §§ 20-13-201-205 and Tenn Code Ann. §§ 47-17-101-105.
- Declaration of a Statewide Opioid Settlement Agreement Release (March 23, 2022)
- Tennessee State-Subdivision Opioid Abatement Agreement
- Tennessee Abatement Fund Initial County Allocation Percentages (This is the table referenced in the Tennessee State-Subdivision Opioid Abatement Agreement, Exhibit A, Section F.)
- State approval of Tennessee State-Subdivision Opioid Abatement Agreement (November 22, 2021)
- Tennessee Opioid Settlement Executive Summary for Tennessee Subdivisions
- Tennessee Opioid Settlement FAQs for Tennessee Subdivisions (Please note that this document includes references to Exhibit G in the J&J Settlement Agreement, which has not yet been provided by the company.)
- Tennessee Opioid Settlement Model Resolution for Subdivisions (This model resolution was drafted by subdivisions and should be modified to fit each subdivision and its requirements for such acts.) ...click here for the Microsoft Word version.