Attorney General Paxton announced that Texas is joining a $2.37 billion settlement with opioid manufacturer Allergan for its role in the nationwide opioid epidemic. The agreement in principle was previously announced in July 2022. Under the settlement, over $135 million is designated for Texas and its local governments. Allergan will pay participating states and local governments over a period of seven years.  

The company formerly made generic opioids as well as Norco- and Kadian-branded opioids. Allergan sold its generics portfolio, including opioid products, to Teva in 2016. The states negotiated the agreements jointly with Allergan and Teva Pharmaceuticals. Texas settled separately with Teva in February 2022 for $150 million in cash and $75 million worth of Narcan, which is a lifesaving intervention for opioid overdoses used by first responders. 

The coalition of states alleged that Allergan deceptively marketed opioids by downplaying the risk of addiction, overstating their benefits, and encouraging doctors to treat patients showing signs of addiction by prescribing them more opioids. They also alleged that Allergan failed to maintain effective controls to prevent diversion of opioids. 

“I am pleased to announce yet another settlement to help get accountability for those who have created and worsened this crisis,” said Attorney General Paxton. “This settlement will not only help get justice for those who have suffered because of Allergan’s reckless actions, but it will also provide funds to stop the irresponsible distribution of opioids and help individuals battling addiction.”  

Under the agreement, Allergan must share clinical data through a third-party archive, disclose documents through a public repository, and stop selling opioids. Allergan also cannot fund or provide grants to third parties for promoting opioids or lobby on matters related to opioids.    

This agreement is one of many opioid settlements that Attorney General Paxton has negotiated for Texas. Attorney General Paxton has secured over approximately $2.5 billion for Texas from those who have worsened the opioid crisis, including Allergan, Wal-Mart, CVS, Mallinckrodt, Teva, Endo, Johnson & Johnson, McKinsey, and others.