Attorney General Taylor Responds to Announcement of $26 Billion Agreement with Opioid Distributors and Johnson & Johnson

July 22, 2021

(Anchorage, Alaska) - Attorney General Treg Taylor responded today to a historic $26 billion proposed agreement with Cardinal, McKesson, and AmerisourceBergen, the nation's three major pharmaceutical distributors, and Johnson & Johnson, which manufactured and marketed opioids, that will help bring relief to people across the country who are struggling with opioid addiction.

The agreement would resolve the claims of both states and local governments across the country, including the nearly 4,000 that have filed lawsuits in federal and state courts. Following today's proposed agreement, states have 30 days to sign onto the deal and local governments in the participating states will have up to 150 days to join. States and their local governments will receive maximum payments if each state and its local governments join together in support of the agreement.

'We are in the home stretch after months of negotiations,' said Attorney General Taylor. 'The State will review the final proposed terms to determine the best course of action for Alaska and reach out to our local communities and the legislature as part of that process. The opioid epidemic continues to have great impacts on our health care system, public safety, and the lives of Alaskans. Those responsible need to be held accountable. The money from the settlement will not make everything whole, but it is a step in the right direction.'

The agreement also requires significant industry changes that will help prevent this type of crisis from ever happening again. The agreement would resolve investigations and litigation over the companies' roles in creating and fueling the opioid epidemic.

'Alaska has been in the throes of the opioid epidemic for far too long, leaving countless families and communities broken and distressed. This historic settlement will aide in our country's and state's response, ensuring the proper guardrails are up to prevent this crisis from continuing and reemerging in the future,' said Governor Mike Dunleavy.

'Alaska continues to be negatively affected by the opioid epidemic with overdose rates increasing every year,' said Dr. Anne Zink, Alaska's Chief Medical Officer. 'In Alaska, in 2019, 83 people died from opioid related deaths, in 2020 that number increased to 102 deaths.'

To treat those conditions in Alaska, and the diseases associated with opioid use disorder, it cost $12 million in hospital-related medical costs in 2018; while the Alaska Department of Public Safety reported $5.1 million in departmental costs across 746 opioid-related incidents.

'The opioid epidemic has affected countless lives in Alaska, and this is the first step towards healing and recovery, but our work is not yet finished,' said Commissioner Adam Crum, Alaska Department of health and Social Services. 'We will continue to work with medical providers and community groups on providing resources, education and support to address the crisis.'

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Department Media Contact:Assistant Attorney General Grace Lee.

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