The state of Alabama on Tuesday reached a $276 million settlement agreement with Endo Pharmaceutical, Johnson & Johnson, and McKesson for their role in exacerbating the opioid crisis.
The settlement will see pharmaceutical giant Johnson & Johnson pay $70.3 million in a lump-sum payment to Alabama state and its subdivisions this year, and Endo Pharmaceutical pay $25 million this year. Drug distributor McKesson will pay out $141 million to the state and its subdivisions over nine years.
The state had accused McKesson of failing to prevent the diversion of opioids for illicit purposes, and the drugmakers of engaging in deceptive marketing practices that downplayed the addiction risks of their painkillers. The companies have denied wrongdoing.
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