Johnson & Johnson JNJ-N said on Monday it agreed to pay $99-million to settle claims by West Virginia that it helped fuel an opioid addiction crisis in the state, removing the company from an ongoing trial that began earlier this month.
West Virginia is still pursuing claims against Teva Pharmaceuticals Industries Ltd TEVA-N and AbbVie Inc’s ABBV-N Allergan in the Kanawha County Circuit Court trial for their alleged role in the crisis.
The state accused the companies of causing a “tsunami” of addiction.
J&J did not admit liability or wrongdoing in the settlement, the company said.
West Virginia Attorney-General Patrick Morrisey said on Monday that the settlement, which also resolves lawsuits by local governments, would allow the state to quickly fund programs intended to address opioid addiction and its fallout in the state.
“We can save lives this year, and that’s what we’re going to do,” Morrisey said at a news conference.
J&J finalized a nationwide $5-billion opioid settlement in February, which largely resolved state and local government opioid lawsuits against the company.
West Virginia was one of five states that did not join that settlement at the time. The state would have received about $50-million had it joined the earlier agreement.
Morrisey said the increased recovery from J&J vindicated the decision not to join the nationwide settlement.
West Virginia has been hit particularly hard by the U.S. opioid crisis, which has caused 500,000 overdose deaths over the past two decades. In 2020, it had an overdose death rate of more than three times the national average, according to statistics from the U.S. Centers for Disease Control and Prevention.
With about 0.5 per cent of the U.S. population, the state now has the highest per capita allocation from J&J’s opioid settlements, Morrisey said.
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