Global Opioid Settlement

SUMMARY OF PROPOSED OPIOID SETTLEMENTS

BACKGROUND

Texas, along with a broad coalition of states and subdivisions, has now reached final agreements with fifteen companies to resolve legal claims for their role in the opioid crisis. The newest agreement is with opioid manufacturer Purdue Pharma and the Sackler family. There are also agreements with opioid manufacturers Johnson & Johnson, Endo, Teva, and Allergan. There is a separate joint agreement with three major pharmaceutical distributors: AmerisourceBergen, Cardinal Health, and McKesson, as well as a settlement reached through bankruptcy with Mallinckrodt, a manufacturer and distributor. Finally, there are separate settlements with pharmacies CVS, Walgreens, Walmart, and Kroger.

FINANCIAL TERMS

The recent settlement with Purdue and the Sackler family brings Texas’ combined share to $3.3 billion, with Purdue and the Sacklers paying an estimated $286 million to Texas.

Distribution within Texas is governed by the Texas Term Sheet, an intrastate agreement between the state and litigating subdivisions, and administered by the Opioid Council. The funding must be used to support any of a wide variety of strategies to fight the opioid crisis. Separate provisions exist to compensate attorneys who have pursued opioid litigation on behalf of states and local governments. The more subdivisions that join the settlements, the more money everyone in Texas will receive.

Nationally, the agreements reached with manufacturers, distributors, and pharmacies provide for almost $60 billion in payments for states and local governments. Funding is distributed to states according to the allocation agreement reached among the Attorneys General. Subdivisions can only participate in the agreements if their state participates.

INJUNCTIVE TERMS

All the settlement agreements contain industry-changing injunctive terms. The distributors will be subject to more oversight and accountability, including an independent monitor, to prevent deliveries of opioids to pharmacies where diversion and misuse occur. The distributors will be required to establish and fund an independent clearinghouse to track opioid distribution nationwide and flag suspicious orders. The pharmacies will also be subject to this oversight and will be required to flag and not fill suspicious orders. The manufactures will be prohibited from selling or promoting opioids.

INFORMATION ABOUT THE PURDUE/SACKLER SETTLEMENT

The proposed Purdue/Sackler settlement is actually two settlements being implemented in connection with Purdue’s bankruptcy proceedings. It consists of a settlement of Purdue’s claims against the Sacklers (the “Estate Settlement”) to be distributed pursuant to a chapter 11 plan, and a settlement of direct claims against the Sacklers held by States, local governments and other creditors (the “Direct Settlement”). Dollars will flow from both settlements.

Texas subdivisions will decide whether to participate in the Direct Settlement. The more subdivisions that participate, the more funds flow to that Texas and its subdivisions. Any subdivision that does not participate cannot directly share in any of the Direct Settlement funds. Please note that Texas OAG will be collecting Subdivision Participation Forms for the Purdue/Sackler Direct Settlement through Rubris Inc. Rubris is the Implementation Administrator for the Direct Settlement.

Additionally, certain eligible Texas subdivisions may receive ballots to vote on the chapter 11 plan that includes the Estate Settlement. These certain eligible subdivisions will be receiving packages to vote on the plan from Kroll, the Claims and Noticing Agent in the Purdue bankruptcy. If you receive a solicitation package from Kroll, you should follow the applicable instructions for voting, but please note that voting on the plan is separate from participation in the Direct Settlement, and eligible subdivisions must separately join the Direct Settlement in order to receive the benefits of the Direct settlement.

HOW TO JOIN THE NEW PURDUE/SACKLER DIRECT SETTLEMENT

Please note the instructions for submitting your form have changed from prior settlements. To officially join the Purdue/Sackler Direct Settlement, you need to execute the Subdivision Participation Form through one of the following methods on or before September 30, 2025:

Option 1: Electronic Signature via DocuSign: Executing the Subdivision Participation Form electronically through DocuSign will return the signed form to the Implementation Administrator and associate your form with your subdivision’s records. This is the most efficient method for returning the Subdivision Participation Form.
Option 2: Manual Signature returned via DocuSign: DocuSign allows forms to be downloaded, signed manually, then uploaded to DocuSign and returned automatically to the Implementation Administrator. Please be sure to complete all fields. As with electronic signature, returning a manually signed Subdivision Participation Form via DocuSign will associate your signed forms with your subdivision’s records.
Option 3: Manual Signature returned via electronic mail: If your subdivision is unable to return an executed Subdivision Participation Form using DocuSign, the signed Subdivision Participation Form may be returned via electronic mail to [email protected]. Please include the name, state, and reference ID of your subdivision in the body of the email and use the subject line Settlement Participation Form – [Subdivision Name, Subdivision State] – [Reference ID].

If you are a subdivision who receives a solicitation package from Kroll for the Purdue bankruptcy, please also follow those instructions in addition to submitting a Subdivision Participation Form through one of the above methods. Please note that voting on the plan is separate from participation in the Direct Settlement, and eligible subdivisions must separately join the Direct Settlement in accordance with the above instructions in order to receive the benefits of that settlement.

Detailed instructions on how to sign and return the Participation Form, including changing the authorized signer, can be found at https://nationalopioidsettlement.com. You may also contact [email protected].

If you are unable to use DocuSign or have difficulties logging into Rubris, please contact the Implementation Administrator at [email protected] or the Texas Attorney General’s Office at [email protected].

Note: If you have not previously adopted the Texas Term Sheet, you will need to do so in order to join the Purdue/Sackler Direct Settlement. Once you have adopted the Texas Term Sheet, there is no need to readopt the Texas Term Sheet and/or resend that Term Sheet to OAG for newer settlements.

HOW TO JOIN THE PRIOR OPIOID SETTLEMENTS

To officially join the Allergan, CVS, Distributors, Endo, J&J, Kroger, Teva, Walgreens, and Walmart settlements, you need to:
1. Sign the Subdivision Participation Form for that settlement.
2. Return the Subdivision Participation Form to [email protected].

Note: If you have not previously adopted the Texas Term Sheet, you will need to do so in order to join any opioid settlement. Once you have adopted the Texas Term Sheet, there is no need to readopt the Texas Term Sheet and/or resend that Term Sheet to OAG for newer settlements.

The deadline for subdivisions in Texas to sign on to the Kroger settlement was December 29, 2024.

The deadline for subdivisions in Texas to sign on to the Allergan, CVS, Walgreens, and Walmart settlements was April 18, 2023.

The deadline for subdivisions in Texas to sign on to the Teva and Endo settlements was March 10, 2022.

The deadline for subdivisions in Texas to sign on to the Distributors and J&J settlements was January 26, 2022.

If your subdivision has not yet joined a prior opioid settlement, you may still have an opportunity to do so. Please get the relevant participation form emailed to [email protected] as soon as possible.

Purdue/Sackler Settlement Documents *

*Note: Certain eligible subdivisions will be receiving packages from Kroll to vote on the Purdue bankruptcy plan; if you are one of those subdivisions, you should follow the instructions in those packages. Additional information is available on the Purdue bankruptcy docket at: https://restructuring.ra.kroll.com/purduepharma/Home-DocketInfo.