Shelby County slated to receive $20 million in opioid lawsuit
Shelby County is slated to receive $20 million as a partial settlement in its opioid lawsuit against pharmaceutical distributors and manufacturers — and that’s just the first of several settlements expected.
“I think this is all favorable for the citizens of Shelby County and we thank our hard-working attorneys,” said Commissioner Van Turner. “These funds will be used to remediate the opioid crisis in this community.”
The settlement was discussed in a lengthy closed-door executive session between commissioners and county attorneys earlier Wednesday.
The resolution accepting the settlement, which is expected to be approved by the full commission Monday and later signed by Shelby County Mayor Lee Harris, will mean the county joining the State of Tennessee and other local governments as participants in the Tennessee State-subdivision Opioid Abatement Agreement.
The plan, which was signed into law by Tennessee Gov. Bill Lee on May 24, 2021, sets forth a framework for the proposed allocation and use of settlement funds.
Tennessee joined other states and subdivisions
in the $26 billion settlements with three pharmaceutical distributors — Amerisourcebergen Corporation, Cardinal Health, Inc., and Mckesson Corporation — and with the opioid manufacturer Janssen, a subsidiary of Johnson & Johnson, in July 2021.
The state of Tennessee as a whole will receive an estimated $600 million as part of the deal. The opioid settlements will be paid out over 18 years with more than twothirds of the money going toward opioid treatment and prevention.
In Tennessee, opioid overdoses kill an average of more than five people per day, according to the state. Nationwide, opioid overdose deaths rose to a record 93,000 in 2020, a nearly 30% increase over the prior year.
The agreement also requires Johnson & Johnson
to stop selling opioids for 10 years, to not fund or provide grants to third parties for promoting opioids and to not lobby on activities related to opioids.
It also requires the three pharmaceutical distributors to use data to detect suspicious opioid orders from pharmacies, to report suspicious opioid orders and to stop pharmacies’ abilities to receive shipments and to report those companies when they show signs of drugs being diverted.
An ongoing opioid lawsuit by Shelby County against multiple defendants continues in circuit court.
Katherine Burgess covers county government and religion. She can be reached at katherine.burgess@commercialappeal.com, 901-529-2799 or followed on Twitter @kathsburgess.