State attorneys general reach $450 million nationwide settlement in bankruptcy of opioid maker Endo
(Hartford, CT) – Attorney General William Tong has reached a tentative agreement with opioid maker Endo International plc and its lenders that would provide up to $450 million to participating states and local governments, ban the promotion of Endo’s opioids and would compel Endo to turn over millions of documents related to its role in the opioid crisis for publication in an online public archive.
Tentative settlement with Endo, which filed for Chapter 11 bankruptcy Tuesday night in the Southern District of New York, resolves allegations that Endo boosted opioid sales using deceptive marketing that minimized the risk of addiction and exaggerated the benefits. Endo, an Ireland-based drugmaker with its US headquarters in Malvern, Pennsylvania, makes generic and branded opioids including Percocet and Endocet, and also made Opana ER, which was taken off the market in 2017. States allege that Endo falsely promoted the benefits of Opana ER’s so-called abuse-deterrent formulation, which did nothing to deter oral abuse and led to deadly epidemics of hepatitis and HIV in because of its widespread abuse by injection.
“Endo falsely sold its opioids as an abuse deterrent with deadly consequences. They downplayed the risks, emphasized the benefits, and reaped the benefits while people suffered and died. Our settlement requires Endo to pay $450 million to states across the nation to support treatment and prevention, bans the marketing of their opioids forever, and forces the disclosure of millions of documents,” said Attorney General Tong. “One by one, we are taking on all players in the addiction industry and holding them accountable for the lives they have destroyed.”
The resolution, which is dependent on final documentation and bankruptcy court approval, involves the following:
• Requires payment of $450 million in cash over 10 years to participating states and subdivisions.
• Demands that Endo turn over its opioid-related documents for publication online in a public records archive and pay $2.75 million for archiving expenses.
• Forever banned the marketing of Endo’s opioids.
Negotiations are led by the following states: Maine, Massachusetts, New Hampshire, Pennsylvania, Tennessee, Vermont and Virginia. The settlement is also joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Rhode Island, South Carolina, South Dakota, Utah , Washington, Wisconsin, Wyoming and the US Virgin Islands.
Previous Opioid Regulations
Purdue Pharma and the Sacklers: Attorney General Tong announced last March that Purdue Pharma and the Sackler family would pay $6 billion to victims, survivors and states for their role in the opioid epidemic. Connecticut will receive up to $95 million to support opioid treatment and prevention and provide assistance to victims and survivors.
Distributors and Johnson & Johnson: In July 2021, Attorney General Tong announced a landmark $26 billion agreement with pharmaceutical distributors Cardinal, McKesson and AmerisourceBergen and manufacturer Johnson & Johnson to provide desperately needed resources to fight the crisis opioids. Connecticut will receive approximately $300 million as part of the landmark settlement. The first $11 million payment to Connecticut and its cities and towns arrived this month.
McKinsey: In February 2021, Attorney General Tong announced Connecticut had helped lead a coalition of attorneys general from 47 states, the District of Columbia, and five U.S. territories in a $573 million settlement with McKinsey & Company. Connecticut will receive $7,513,087.22, which will be used to reduce the opioid epidemic.
Mallinckrodt: In October 2020, Attorney General Tong announced that a $1.6 billion global settlement framework had been reached between state attorneys general and opioid manufacturer Mallinckrodt. The company has since declared bankruptcy. Connecticut will receive $13.9 million.
Allergan: In July 2022, Attorney General Tong announced a $2.37 billion framework agreement with Allergan and the states regarding the generic drugmaker’s role in the opioid epidemic.
Teva: In July 2022, Attorney General Tong announced a $4.25 billion framework agreement with Teva Pharmaceuticals and the states regarding the generic drugmaker’s role in the opioid epidemic.
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