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Johnson & Johnson Agrees to $297M Opioid Deal with Texas, National Deal Faces Holdouts

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Johnson & Johnson (J&J) and the top three drug distributors previously agreed to a national opioid settlement for 26 billion dollars. However, because that deal is not yet finalized, the pharmacy company is moving forward with a separate deal in Texas. 

New Settlement for Johnson & Johnson and Texas

For the new deal, which is consistent with the nationwide settlement, J&J will pay Texas 297 million dollars to put towards opioid claims from the state and its municipalities. The national deal, then, will no longer included this settlement amount. Additionally, J&J will no longer be a defendant in pending opioid litigation in the state, which includes two bellwether trials planned for early next year. 

The pharmacy company clarified that the settlement with Texas is not an admission of guilt. They believe that their opioid marketing was “appropriate and responsible.” 

National Opioid Deal

The national deal was created in July between J&J, drug distributors, states, and localities. Unfortunately, it is still seeking the needed support and not yet finalized. Eight states have yet to sign on, according to Reuters. In this settlement, J&J agreed to pay 5 billion dollars, while the distributors agreed to pay 21 billion dollars.

The Texas deal isn’t completed until 96 percent of the localities that filed lawsuits against J&J are signed on. This new settlement is an attempt by Texas to secure payout regardless of the outcome of the national deal. 

J&J has also defended itself against talc litigation in past years. Recently, the pharmaceutical company said they would move its talc business to a new subsidiary and declare bankruptcy for the current business. They have set aside billions of dollars to deal with thousands of lawsuits that link their talc products to cancer. Plaintiffs are arguing against the bankruptcy approach. 

For more information about the opioid crisis and settlement, contact us today.

Additional Reading:

Pharmacies Face First Trial for Role in Opioid Crisis

Tentative Opioid Settlement For $26 Billion Focuses on Treatment, Prevention, and Education

Johnson & Johnson Agrees to End Opioid Business With $230 Million Settlement

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Tracy Everhart is the Editor for Drug Law Journal. A highly-trained and certified medical professional, Tracy is also an accomplished medical writer. After spending years on the front lines of the medical profession, Tracy now devotes her expertise and skills to researching and reporting on new drugs and devices that enter the market, as well as their side-effects and the real-life stories involved. Prior to joining Drug Law Journal, Tracy wrote for benchmark online healthcare resources focused on families and, in particular, women’s health issues. Tracy holds post-graduate degrees from both the American College of Healthcare Sciences and the Yale School of Nursing. She is also a graduate of both Hampshire College, where she studied microbiology and the University of South Carolina school of nursing.