Native American tribes reach $590 million opioid settlement

‘Every penny counts, so we’ll take it,’ says chair of the Spirit Lake Nation

Native American tribes have reached settlements over the toll of opioids totaling $590 million with drugmaker Johnson & Johnson and the country’s three largest drug distribution companies, according to a court filing made Tuesday.

The filing in U.S. District Court in Cleveland lays out the broad terms of the settlements with Johnson & Johnson, and distributors AmerisourceBergen, Cardinal Health and McKesson. Some details are still being hashed out.

All federally recognized tribes in the U.S. can participate in the settlements, even if they did not sue over opioids. And there could be settlements between other firms in the industry and tribes, many of which have been hit hard by the overdose crisis.

W. Ron Allen, chair of the Jamestown K’Klallam Tribe in Sequim, Washington, called it a big deal for tribes to reach their own settlement, in contrast with tobacco industry deals in the 1990s that left out Native American groups.

Allen doesn’t expect his tribe of about 550 people to get much from the settlement, but it will help efforts to build a healing center to address opioid addiction, he said. “Every penny counts, so we’ll take it,” he said.

“American Indians have suffered the highest per capita rate of opioid overdose and are more likely than other group in the United States to die from druginduced deaths,” said Douglas Yankton, chair of the Spirit Lake Nation in North Dakota, in a statement. “The dollars that will flow to Tribes under this initial settlement will help fund crucial, on-reservation, culturally appropriate opioid treatment services.”

More than 400 tribes and intertribal organizations representing about 80% of tribal citizens have sued over opioids.

New Brunswick, New Jerseybased Johnson & Johnson, which has stopped selling opioids, said in a statement Tuesday that the settlement is not an admission of liability or wrongdoing.

AmerisourceBergen, based in Conshohocken, Pennsylvania, said in a statement that the deal will expedite help for communities and let the company focus on the pharmaceutical supply chain. Cardinal, based in Columbus, Ohio, and McKesson, based in Irving, Texas, declined to comment.

Under the deal, Johnson & Johnson would pay $150 million over two years. AmerisourceBergen, McKesson and Cardinal would contribute $440 million over seven years. Each tribe can decide whether to participate, but would be required to use the money to deal with the opioid epidemic.

The deal will take effect when 95% of tribes with lawsuits against the companies agree to the settlement, said Tara Sutton, a lawyer whose firm represents 28 tribes.

Settlements are also in the works between tribes and other companies involved in opioids, Sutton said.