Attorney General Bonta Announces $2.37 Billion Nationwide Settlement with Former Opioid Manufacturer Allergan

Friday, July 29, 2022
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If finalized, the Allergan settlement, together with the Teva settlement announced earlier this week, would provide as much as $6.6 billion nationwide to address the opioid epidemic

OAKLAND – California Attorney General Bonta today announced a bipartisan nationwide agreement in principle to address the opioid crisis. The proposed settlement on important financial terms would require former opioid maker Allergan to pay up to $2.37 billion to participating states and local governments. The settlement comes on the heels of Tuesday’s announcement of a $4.25 billion settlement with opioid manufacturer Teva. Abbvie, which acquired Allergan in 2020, disclosed the agreement in its earnings disclosure Friday.

“Taken together, our proposed settlements with Allergen and Teva would provide more than $6 billion to address the opioid epidemic and provide much-needed relief to our communities,” said Attorney General Bonta. “We’ve taken an important step forward this week with these announcements, but the fight to hold those responsible for the opioid crisis accountable is far from over. We're continuing to work to make sure that these companies never again engage in the improper business practices that led to this ongoing crisis.” 

Both settlements remain contingent on resolution of key issues, including details regarding the settlement structure, which is expected to build on the framework developed in prior nationwide opioid settlements. The parties are also negotiating terms requiring business practice changes and transparency.  

Ireland-based Allergan formerly made Norco- and Kadian-branded and generic opioids. The company sold its generics portfolio, including opioid products, to Teva in 2016. Teva and the attorneys general announced Tuesday that they had reached an agreement in principle to provide up $4.25 billion to address its part in the opioids crisis. The Teva agreement in principle is contingent, in part, on Allergan reaching its own settlement with the states. 

The coalition of states alleged that Allergan:

  • Deceptively marketed opioids by downplaying the risk of addiction, overstating their benefits, and encouraging doctors to treat patients showing signs of addiction by prescribing them more opioids; and
  • Failed to maintain effective controls to prevent diversion of opioids. 

The $2.37 billion figure includes money that Allergan has already agreed to pay under settlements with individual states.

The negotiations are being led by California, Iowa, Illinois, Maryland, Massachusetts, New York, North Carolina, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and Wisconsin. While New York was among the 13 states integral to negotiating this settlement, New York settled separately with Allergan in December 2021 as a part of its trial.

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