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Arizona decides how to divvy up $549 million settlement from opioid makers

Arizona Attorney General Mark Brnovich said the state's share of a $26 billion payout from manufacturers of opioids will be spent on addiction prevention.
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PHOENIX — The Arizona Attorney General's Office has signed a tentative agreement that could allocate $549 million to the state for curbing the long-term impacts of the nation's deadly opioid epidemic. 

Johnson & Johnson, Cardinal Health, McKesson Pharmaceutical, and AmerisourceBergen -- all distributors or manufacturers of opioid pills -- are preparing to pay out a $26 billion settlement to resolve lawsuits filed by Arizona and other states harmed by the country's growing number of opioid-related overdoses reported in recent years. 

In 2017, Arizona declared a public health emergency after the state saw its number of opioid-related deaths soar by 75% over a five-year period. 

The crisis resulted in several pieces of litigation getting filed against the pharmaceutical companies that were blamed for peddling pills on vulnerable patients. 

Arizona had more than 2,600 residents die from drug overdoses in 2020, which was 33% more than the previous year. 

On Monday, Arizona Attorney General Mark Brnovich announced he had signed on to the terms of a settlement that would provide $549 million to fund the state's efforts in stopping drug abuse. 

"Today, we are one step closer to holding pharmaceutical companies accountable for recklessly putting their bottom line above the well-being of our families and communities," Brnovich said. "This settlement will provide crucial funding for opioid treatment, prevention, and education to help address this crisis.”

If finalized, the multistate settlement would be paid out by the defendants over an 18-year period. 

Ninety cities in all 15 of Arizona's counties have signed onto an agreement that outlines how the $549 million settlement would be distributed across the state. 

About 56% of the funds would be allocated to local municipalities and 44% would go into a state fund reserved for opioid-related prevention programs. 

Cities could use the money on expenses related to the treatment of opioid addiction, support for people in treatment and recovery, and support for people who are at risk of becoming addicted to opioids.

As part of the settlement, the drug distributors must promise to report suspicious orders for opioids from pharmacies. 

Johnson & Johnson will be ordered to stop selling opioids for a 10-year period and will be prohibited from lobbying on activities related to opioids. 

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