Opioid producer and raw material supplier Johnson & Johnson (NYSE:JNJ) reached a settlement last week in an opioid lawsuit with Washington state.
What Happened: To avoid trial in Attorney General Bob Ferguson's lawsuit, Johnson & Johnson agreed to pay $149.5 million to the Evergreen State over “alleged past, present, and future financial, societal, and related expenditures arising out of the alleged misuse and abuse of opioid products, that have allegedly been caused by Janssen.”
Why It Matters: The resolution, filed Wednesday in King County Superior Court, grants the state and its local governments with tens of millions of dollars more to deal with the fentanyl crisis compared to the settlement that Ferguson declined three years ago.
Washington is one of three states receiving more money than it otherwise would have under the 2021 multistate settlement that would grant it $98.9 million over a nine-year term.
Under Wednesday's settlement, the pharma giant is to pay $149.5 million in one lump sum this fiscal year. Furthermore, the agreement requires that $123.3 million of the total amount be used to combat the opioid epidemic, including the fentanyl crisis. Half of these ...