Attorney General James to Deliver Up to $36.8 Million to Central New York to Combat Opioid Crisis

• by Ken Jackson
• October 13, 2021

AG James Continues Statewide ‘HealNY’ Tour to Deliver Money to Cities and Counties Ravaged by Opioid Epidemic, Stops in Syracuse  New York – New York Attorney General Letitia James continued her statewide ‘HealNY’ tour of New York state with a stop in Syracuse, where she announced that she will deliver up to $36.8 million to Central New York to combat the opioid epidemic. The funds come from different settlements Attorney General James has negotiated following her March 2019 lawsuit against the various manufacturers and distributors responsible for the opioid crisis. Attorney General James’ tour will make stops in dozens of New York counties throughout the month of October, with up to $1.5 billion in funds going to counties across New York state. “For two decades, Central New York has been ravaged by the opioid crisis, but, today, we are finally beginning to heal New York by announcing that we will deliver up to $36.8 million to the region to prevent any further devastation,” said Attorney General James. “These funds will be crucial in turning the tide on the opioid crisis as we invest in critical prevention, treatment, and recovery programs. While no amount of money will ever make up for all that we have lost, we can take every action possible to prevent future loss.” The lawsuit Attorney General James filed in 2019 was, at the time, the nation’s most extensive lawsuit against the various manufacturers and distributors of opioids. These manufacturers and distributors were responsible for heavily marketing opioids to doctors, hospitals, health care systems, and others, which led to the over prescription of the drugs across New York and the rest of the nation over the last two decades. The manufacturers named in Attorney General James’ complaint included Purdue Pharma and its affiliates, as well as members of the Sackler Family (owners of Purdue) and trusts they control; Janssen Pharmaceuticals and its affiliates (including its parent company Johnson & Johnson); Mallinckrodt LLC and its affiliates; Endo Health Solutions and its affiliates; Teva Pharmaceuticals USA, Inc. and its affiliates; and Allergan Finance, LLC and its affiliates. The distributors named in the complaint were McKesson Corporation, Cardinal Health Inc., Amerisource Bergen Drug Corporation, and Rochester Drug Cooperative Inc. Last month, a settlement with Endo was announced that has already delivered $50 million to New York state and Nassau and Suffolk counties to combat the opioid crisis and remove the opioid manufacturer from New York’s ongoing opioid trial. Also, last month, a settlement that secured more than $4.5 billion — at least $200 million of which will be earmarked for New York — from the Sackler family and foundations that they control, ends the Sacklers’ ability to manufacture opioids ever again, and will shut down Purdue Pharma was announced. In July, a settlement with McKesson, Cardinal Health, and Amerisource Bergen that will deliver up to $1 billion to New York state to combat the opioid epidemic was announced. In June, a settlement that ended Johnson & Johnson’s sale of opioids nationwide and that will deliver $230 million to New York alone was announced. The deals with Johnson & Johnson, McKesson, Cardinal Health, and Amerisource Bergen have a global value of approximately $26 billion. The cases against Mallinckrodt and Rochester Drug Cooperative are now moving separately through U.S. Bankruptcy Court. The trial against the two remaining defendants — Teva Pharmaceuticals USA and Allergan Finance — is currently underway and continues in state court. Pursuant to the new law establishing the opioid settlement fund, all funds collected by the state from opioid settlements or litigation victories will be allocated specifically for abatement efforts in communities devastated by the opioid epidemic and will not go towards the state’s general fund. Every region in the state will receive millions of dollars for prevention, treatment, and recovery programs to combat the opioid crisis. The figures listed below represent the minimum and maximum amounts each county can receive from the settlements with Johnson & Johnson, McKesson, Cardinal Health, Amerisource Bergen, and Endo. The more localities across the state that agree to the terms of these different settlements, the more each locality is eligible to receive. The figures below do not include payments from Purdue Pharma or the Sackler family, as the regional split for those payments are still being finalized. Those funds, as well as any funds from future or ongoing litigation, would be in addition to what is listed below. Central New York Total: $20,321,595.90 – $36,887,518.64* Cayuga County: $780,722.59 – $1,348,083.50 Cortland County: $467,502.13 – $807,241.80 Madison County: $700,424.29 – $1,209,431.41 Onondaga County: $7,509,074.79 – $13,146,928.49** Oswego County: $1,338,897.80 – $2,311,891.64 * In addition to sum total of counties, a regional share is also being allocated here. ** Not all funds going to the county. Also includes funds going directly to a major city within the county. Local Elected Officials and Stakeholders Comment on the program “We have experienced the dire toll of the opioid epidemic for far too long,” said State Senator Rachel May. “Whether it’s our friends, family, or neighbors, we all know someone who has been touched by loss and grief due to the irresponsible actions of opioid manufacturers and distributors. We should all be thrilled about this groundbreaking legal case that finally holds these parties responsible for their blatant disregard for the people of our community. I congratulate Attorney General James on this win, and thank her for ensuring the money from the settlement goes to the people and places that need it.” “The opioid crisis is having devastating effects on our communities. Investing the settlement funds into services for those struggling with opioid addictions helps those most in need,” said State Assemblymember William Magnarelli. “Central New York is fortunate to have centers such as the Bill & Sandra Pomeroy Treatment Center at Crouse Center which has resources to help those suffering in this epidemic.” “I could not be more pleased with the continued efforts to bring accountability to drug companies that knowingly facilitated the onset of the opioid epidemic,”