SUMMARY OF PROPOSED OPIOID SETTLEMENTS
BACKGROUND
Texas, along with a broad coalition of states and subdivisions, has now reached final agreements with eleven companies to resolve legal claims for their role in the opioid crisis. Four agreements are with opioid manufacturers Johnson & Johnson, Endo, Teva, and Allergan. There is a separate agreement with three major pharmaceutical distributors: AmerisourceBergen, Cardinal Health, and McKesson, as well as a settlement reached through bankruptcy with Mallinckrodt, a manufacturer and distributor. Finally, there are three separate settlements with pharmacies CVS, Walgreens, and Walmart.
FINANCIAL TERMS
Nationally, the agreements reached with manufacturers, distributors, and pharmacies provide for nearly $50 billion in payments for states and local governments. Funding is distributed to states according to the allocation agreement reached among the Attorneys General. A subdivisions can only participate in the agreements if their state participates. The recent settlements with Allergan, CVS, Walmart, and Walgreens brings Texas’ combined share to almost $3 billion, with Allergan paying $135 million, CVS paying $304 million, Walgreens paying $340 million, and Walmart paying $170 million. Distribution within Texas is governed by the Texas Term Sheet, an intrastate agreement between the state and litigating subdivisions, and administered by the Opioid Council. The funding must be used to support any of a wide variety of strategies to fight the opioid crisis. Separate provisions exist to compensate attorneys who have pursued opioid litigation on behalf of states and local governments. The more subdivisions that join the settlements, the more money everyone in Texas will receive. Future opioid litigation by non-participating entities may result in suspension and reduction of future payments. Even without full resolution of claims, states and subdivisions can still receive substantial payments by resolving a significant portion of current and future claims.
INJUNCTIVE TERMS
All the settlement agreements contain industry-changing injunctive terms. The distributors will be subject to more oversight and accountability, including an independent monitor, to prevent deliveries of opioids to pharmacies where diversion and misuse occur. They will be required to establish and fund an independent clearinghouse to track opioid distribution nationwide and flag suspicious orders. The pharmacies will also be subject to this oversight and will be participating in the clearinghouse. J&J, Endo, Teva, and Allergan will be prohibited from selling or promoting opioids.
HOW TO JOIN THE NEW ALLERGAN, CVS, WALGREENS, AND WALMART SETTLEMENTS
To officially join the Allergan, CVS, Walgreens, and Walmart settlements, you need to:
1. Sign the Subdivision Participation Form (one for Allergan, one for CVS, one for Walgreens, and one for Walmart);
2. Return all four documents to [email protected] no later than April 18, 2023.
*Note, if you have previously adopted the Texas Term Sheet to join the Distributors, J&J, Teva, and/or Endo settlements, there is no need to readopt the Texas Term Sheet and/or resend that Term Sheet to OAG for Allergan, CVS, Walgreens, and Walmart settlements.
HOW TO JOIN THE TEVA SETTLEMENT
To officially join the Teva settlements, you need to:
1. Sign the Teva TX Subdivision Release Form;
2. Return the Teva TX Subdivision Release Form to [email protected].
*Note, if you have previously adopted the Texas Term Sheet to join the Distributors and J&J settlements, there is no need to readopt the Texas Term Sheet and/or resend that Term Sheet to OAG for the Teva settlement.
The deadline for subdivisions in Texas to sign on to the Teva settlement was March 10, 2022. If your subdivision has not yet joined, you may still have an opportunity to do so. Please get these documents emailed to [email protected] as soon as possible.
HOW TO JOIN THE ENDO SETTLEMENT
To officially join the Endo settlements, you need to:
1. Sign the Endo TX Subdivision Release Form;
2. Return the Endo TX Subdivision Release Form to [email protected].
*Note, if you have previously adopted the Texas Term Sheet to join the Distributors and J&J settlements, there is no need to readopt the Texas Term Sheet and/or resend that Term Sheet to OAG for the Endo settlement.
The deadline for subdivisions in Texas to sign on to the Endo settlement was March 10, 2022. If your subdivision has not yet joined, you may still have an opportunity to do so. Please get these documents emailed to [email protected] as soon as possible.
HOW TO JOIN THE DISTRIBUTORS AND J&J SETTLEMENTS
To officially join the Distributors and J&J settlements, you need to:
1. Sign the Subdivision Settlement Participation Forms (one for JNJ and one for the Distributors);
2. Adopt the Texas Term Sheet and its intrastate allocation schedule;
3. Return all three documents (the Subdivision Participation Form JNJ, the Subdivision Settlement Participation Form Distributors, and your resolution adopting the Texas Term Sheet) to [email protected].
Subdivisions in participating states had through January 26, 2022, to join. If your subdivision has not yet joined, you may still have an opportunity to do so. Please get these documents emailed to [email protected] as soon as possible.
GLOBAL OPIOID SETTLEMENT DOCUMENTS
General Opioid Settlement Information and Documents:
• Global Opioid Settlement PowerPoint Presentation
• Opioid Settlement One Pager
• List of Uses for Opioid Remediation Funds
• Texas Term Sheet
• Sample Resolution
2023 Global Opioid Settlement Information and Documents:
• Final Allergan Global Settlement Agreement
• Final CVS Global Settlement Agreement
• Final Walgreens Settlement Agreement
• Final Walmart Settlement Agreement
• Subdivision Participation Form (Allergan)
• Subdivision Participation Form (CVS)
• Subdivision Participation Form (Walgreens)
• Subdivision Participation Form (Walmart)
Distributor and J&J/Janssen Settlement Documents:
• Final Distributor Settlement Agreement
• Final Janssen Settlement Term Sheet
• Subdivision Participation Form (JNJ)
• Subdivision Participation Form (Distributors)
Endo Settlement Documents:
• Endo TX Subdivision Release Form
• Final Endo Settlement Term Sheet
Teva Settlement Documents:
• Final Teva Settlement Term Sheet
• Teva TX Subdivision Release Form
CONFIRMED SIGN-ONS*
(Janssen & Distributor Settlements)
Abilene, City of
Addison, City of
Alamo Heights, City of (<10k)
Alamo, City of
Albany, City of (<10k)
Alice, City of
Allen, City of
Alpine, City of (<10k)
Alton, City of
Alvin, City of
Amarillo, City of
Anderson County
Angleton, City of
Anna, City of
Anthony, City of (<10k)
Aransas County
Argyle, City of (<10k)
Arlington, City of
Armstrong County (<10k)
Atascosa County
Athens, City of
Atlanta, City of (<10k)
Aubrey, City of (<10k)
Austin County
Austin, City of
Azle, City of
Balch Springs, City of
Balcones Heights, City of (<10k)
Ballinger, City of (<10k)
Bandera County
Bastrop, City of (<10k)
Baylor County (<10k)
Baytown, City of
Beach City, City of (<10k)
Beaumont, City of
Bedford, City of
Beeville, City of
Bell County
Bellaire, City of
Bellmead, City of
Belton, City of
Benbrook, City of
Big Spring, City of
Blanket, City of (<10k)
Blue Ridge, City of (<10k)
Boerne, City of
Bonham, City of
Borger, City of
Bosque County
Bowie, City of (<10k)
Brazoria County
Breckenridge, City of (<10k)
Brenham, City of
Bridge City, City of (<10k)
Bridgeport, City of (<10k)
Brown County
Brownsville, City of
Brownwood, City of
Bryan, City of
Buda, City of
Bulverde, City of (<10k)
Bunker Hill Village, City of (<10k)
Burkburnett, City of
Burleson, City of
Burnet, City of (<10k)
Caldwell, City of (<10k)
Callahan County
Carrollton, City of
Carson County (10k)
Carthage, City of (<10k)
Castle Hills, City of (<10k)
Cedar Hill, City of
Cedar Park, City of
Celina, City of
Chambers County
Chandler, City of (<10k)
Cibolo, City of
Cisco, City of (<10k)
Clear Lake Shores, City of (<10k)
Cleburne, City of
Cleveland, City of (<10k)
Clint, City of (<10k)
Clute, City of
Clyde, City of (<10k)
Coffee City, City of (<10k)
Coke County (<10k)
Coleman, City of (<10k)
College Station, City of
Colleyville, City of
Collin County
Columbus, City of (<10k)
Comal County
Comanche County
Comanche, City of (<10k)
Conroe, City of
Converse, City of
Coppell, City of
Copperas Cove, City of
Corinth, City of
Corpus Christi, City of
Corsicana, City of
Crowley, City of
Cuero, City of (<10k)
Daisetta, City of (<10k)
Dallam County (<10k)
Dallas, City of
Dalworthington Gardens, City of (<10k)
Danbury, City of (<10k)
Dawson County
Dayton, City of (<10k)
De Leon, City of (<10k)
Deaf Smith County
Decatur, City of (<10k)
Deer Park, City of
Del Rio, City of
Denison, City of
Denton County
Denton, City of
Denver, City of (<10k)
DeSoto, City of
Detroit, City of (<10k)
DeWitt County
Diboll, City of (<10k)
Dickinson, City of
Dilley, City of (<10k)
Donna, City of
Dripping Springs, City of (<10k)
Dumas, City of
Duncanville, City of
Eagle Lake, City of (<10k)
Early, City of (<10k)
Eastland County
Eastland, City of (<10k)
Edinburg, City of
Edna, City of (<10k)
El Campo, City of
El Lago, City of (<10k)
El Paso, City of
Elgin, City of
Elmendorf, City of (<10k)
Elsa, City of (<10k)
Enchanted Oaks, City of (<10k)
Ennis, City of
Erath County
Euless, City of
Everman, City of (<10k)
Fair Oaks Ranch, City of
Fairfield, City of (<10k)
Fairview, City of (<10k)
Fannin County (litigating)
Farmers Branch, City of
Fate, City of
Fayette County
Flower Mound, City of
Forest Hill, City of
Forney, City of
Fort Worth, City of
Fredericksburg, City of
Freeport, City of
Friendswood, City of
Frio County
Frisco, City of
Fulshear, City of
Gaines County
Gainesville, City of
Galena Park, City of
Galveston, City of
Garden Ridge, City of (<10k)
Garland, City of
Gatesville, City of
Georgetown, City of
Giddings, City of (<10k)
Gillespie County
Gilmer, City of (<10k)
Glenn Heights, City of
Gonzales County
Gonzales, City of (<10k)
Graham, City of (<10k)
Granbury, City of
Grand Prairie, City of
Grand Saline, City of (<10k)
Granite Shoals, City of (<10k)
Gray County
Greenville, City of
Gregg County
Gregory, City of (<10k)
Grimes County
Groves, City of
Guadalupe County (litigating)
Gun Barrel City, City of (<10K)
Hale Center, City of (<10k)
Hale County
Hall County (<10k)
Haltom, City of
Harker Heights, City of
Harlingen, City of
Haskell, City of (<10k)
Hedwig Village, City of <10k)
Helotes, City of (<10k)
Hemphill County (<10k)
Hempstead, City of (<10k)
Henderson, City of
Hewitt, City of
Hickory Creek, City of (<10k)
Hidalgo, City of
Highland Park, City of (<10k)
Highland Village, City of
Hill Country Village, City of (<10k)
Hill County
Hilshire Village, City of (<10k)
Hitchcock, City of (<10k)
Hockley County
Hondo, City of (<10k)
Hood County
Horizon City, City of
Howard County
Hudson Oaks, City of (<10k)
Hughes Springs, City of (<10k)
Humble, City of
Hunt County
Hurst, City of
Hutchinson County
Hutto, City of
Ingleside, City of
Iowa Colony, City of (<10k)
Jacinto City, City of
Jacksboro, City of (<10k)
Jackson County
Jacksonville, City of
Johnson City, City of (<10k)
Jonestown, City of (<10k)
Josephine, City of (<10k)
Joshua, City of (<10k)
Karnes City, City of (<10k)
Kaufman, City of (<10k)
Keene, City of (<10k)
Keller, City of
Kemah, City of (<10k)
Kent County (<10k)
Kerrville, City of
Kilgore, City of
Killeen, City of
Kingsville, City of
Kirby, City of (<10k)
Kyle, City of
La Feria, City of
La Grange, City of (<10k)
La Marque, City of
La Porte, City of
La Vernia, City of (<10k)
Lake Dallas, City of (<10k)
Lake Jackson, City of
Lake Worth, City of (<10k)
Lakewood Village, City of (<10k)
Lampasas County
Lancaster, City of
Lavaca County
League, City of
Leander, City of
Lee County
Leon Valley, City of (litigating)
Leonard, City of (<10k)
Lewisville, City of
Liberty Hill, City of (<10k)
Liberty, City of (<10k)
Lindsay, City of (<10k)
Little Elm, City of
Live Oak County
Live Oak, City of
Llano County
Lockhart, City of
Lockney, City of (<10k)
Longview, City of
Lorena, City of (<10k)
Lorenzo, City of (<10k)
Lubbock, City of
Lucas, City of (<10k)
Lufkin, City of
Lyford, City of (<10k)
Magnolia, City of (<10k)
Manor, City of
Mansfield, City of
Marble Falls, City of (<10k)
Marlin, City of (<10k)
Marshall, City of
Matagorda County
Maud, City of (<10k)
McAllen, City of
McGregor, City of (<10k)
McKinney, City of
Medina County
Melissa, City of
Mercedes, City of
Mesquite, City of
Mexia, City of (<10k)
Midland County
Midland, City of
Midlothian, City of
Mineola, City of (<10k)
Mineral Wells, City of
Mission, City of
Missouri City, City of
Mobile City, City of (<10k)
Monahans, City of (<10k)
Montague County
Moore County
Mount Enterprise, City of (<10k)
Mount Pleasant, City of
Mountain City, City of (<10k)
Muleshoe, City of (<10k)
Murphy, City of
Nacogdoches, City of
Natalia, City of (<10k)
Navarro County
Nederland, City of
New Braunfels, City of
Normangee, City of (<10k)
North Richland Hills, City of
Northlake, City of (<10k)
Oak Point, City of (<10k)
Oak Ridge North, City of (<10k)
Odessa, City of
Oldham County (<10k)
Orange, City of
Overton, City of (<10k)
Palacios, City of (<10k)
Palestine, City of
Palmview, City of (<10k)
Palo Pinto County
Pampa, City of
Panorama Village, City of (<10k)
Pasadena, City of
Pearland, City of
Pearsall, City of
Pecos County
Pecos, City of
Penitas, City of (<10k)
Pflugerville, City of
Pharr, City of
Piney Point, City of (<10k)
Plainview, City of
Plano, City of
Pleasanton, City of
Port Arthur, City of
Port Lavaca, City of
Port Neches, City of
Portland, City of
Poteet, City of (<10k)
Poth, City of (<10k)
Prairie View, City of (<10k)
Primera, City of (<10k)
Princeton, City of
Prosper, City of
Queen City, City of (<10k)
Quinlan, City of (<10k)
Rains County
Randall County
Ransom Canyon (<10k)
Raymondville, City of
Red Oak, City of
Reeves County
Refugio County (<10k)
Reno, City of (<10k - Lamar Co.)
Richmond, City of
Rio Grande City, City of
Rio Hondo, City of (<10k)
Rising Star, City of (<10k)
Roanoke, City of (<10k)
Robinson, City of
Robstown, City of
Rockdale, City of (<10k)
Rockport, City of
Rockwall, City of
Rollingwood, City of (<10k)
Roma, City of
Rosenberg, City of
Round Rock, City of
Rowlett, City of
Runnels County
Sabine County
Sachse, City of
Saginaw, City of
San Angelo, City of
San Benito, City of
San Elizario, City of (<10k)
San Felipe, City of (<10k)
San Jacinto County
San Marcos, City of
San Saba, City of (<10k)
Santa Fe, City of
Schertz, City of
Scurry County
Seabrook, City of
Seagoville, City of
Sealy, City of (<10k)
Seguin, City of
Selma, City of
Shavano Park, City of (<10k)
Sherman County (<10k)
Sherman, City of
Shiner, City of (<10k)
Slaton, City of (<10k)
Smithville, City of (<10k)
Snyder, City of
Socorro, City of
Somerville, City of (<10k)
South Houston, City of
Southlake, City of
Spring Valley Village, City of (<10k)
Springtown, City of (<10k)
Stafford, City of
Starr County
Stephenville, City of
Stonewall County (<10k)
Sugar Land, City of
Sulphur Springs, City of
Surfside Beach, City of (<10k)
Sweetwater, City of
Taylor County
Taylor Lake Village, City of (<10k)
Taylor, City of
Temple, City of
Terrell Hills, City of (<10k)
Terrell, City of
Terry County
Texarkana, City of
Texas City, City of
The Colony, City of
Thorndale, City of (<10k)
Tom Green County
Tomball, City of
Tool, City of (<10k)
Trenton, City of (<10k)
Trophy Club, City of
Troup, City of (<10k)
Tye, City of (<10k)
Tyler County
Tyler, City of
Universal City, City of
University Park, City of
Uvalde, City of
Val Verde County
Van Alstyne, City of (<10k)
Van Horn, City of (<10k)
Van, City of (<10k)
Vernon, City of
Victoria County
Victoria, City of
Vidor, City of
Waco, City of
Ward County
Washington County
Waskom, City of (<10k)
Watauga, City of
Waxahachie, City of
Weatherford, City of
Webberville, City of (<10k)
Webster, City of
Weslaco, City of
West Lake Hills, City of (<10k)
West Orange, City of (<10k)
West University Place, City of
Weston Lakes, City of (<10k)
Wharton County
Wharton, City of (<10k)
White Oak, City of (<10k)
White Settlement, City of
Whitehouse, City of (<10k)
Wichita Falls, City of
Wilbarger County
Willacy County
Willis, City of (<10k)
Willow Park, City of (<10k)
Wills Point, City of (<10k)
Windcrest, City of (<10k)
Wise County
Woodway, City of (<10k)
Wylie, City of
Yoakum County (<10k)
Yorktown, City of (<10k)
Young County
Zapata County