West Milford officials are looking for action that should bring money to the township treasury from a nationwide settlement by four drug companies to resolve claims over their responsibility for the township’s opioid crisis. The companies are Johnson&Johnson, McKesson, Cardinal Health and Amerisource Bergen. According to a National Opioid Settlement Report published on the internet, the distributers will pay a maximum of over $21 billion over 18 years, while J&J will pay a maximum of $5 billion over no more than nine years, with approximately $22.8 billion in settlement proceeds payable to state and local subdivisions. All New Jersey counties and municipalities who were eligible to join the $26 million settlement signed on.
Of the funds going directly to participating states and subdivisions, at least 85 percent must be used for abatement of the opioid epidemic, with most proceeds restricted to funding abatement efforts by state and local governments. According to the National Opioid Settlement site, defendants have agreed to extend the sign-up period for subdivisions under the distributor and J&J agreement until Jan. 26 in light of several considerations. The original deadline was Jan. 2, but with the rise in Covid, many public entities cancelled or had virtual December meetings, slowing the process, as more states signed on and reached allocation agreements.
The distributors were to make an initial deposit of funds into escrow by the end of September 2021 with additional deposits by J&J and distributors early this summer. According to the National Opioid Settlement report, funding to states and local governments could begin in April, depending on when a state meets certain requirements.
New Jersey legislation was sponsored by Democratic representatives Dawn Marie Addiago (District 8 representing Atlantic, Burlington and Camden Counties) and Troy Singleton (District Seven representing Camden County). A synopsis of it is available on the Internet and the document is also provided there in full. It would establish an Opioid Recovery and Remediation Fund and an Advisory Council in New Jersey for substance use disorder prevention and a treatment program. Continuing, the published National Opioid Statement settlements will allow for a broad range of approved abatement uses by state and local governments.
Developed with public health experts, pre-approved uses include a wide range of intervention, treatment, education and recovery services. On Jan. 5, the Township of West Milford Council, in a resolution, authorized the township’s participation in the nationwide settlement agreements. The township was a party to the class action lawsuit filed by state, local and tribal governments, hospitals, individuals, and insurers, seeking damages against opioid manufacturers, distributors, and retailers in National Prescription Opiate Litigation.
New Jersey Acting Attorney Andrew J. Bruck, on Aug. 20, 2021, announced the state intended to join the nationwide settlement agreements. The local resolution said participation would not only hold the companies financially accountable by requiring payments of as much as $26 billion, but would provide funding to support programs that address the opioid epidemic in New Jersey and across the country and will require significant changes in the pharmaceutical industry aimed at preventing similar crises in the future.
West Milford’s share in the settlement funds will ultimately depend on the number of counties and municipalities that opt-in, population of each participating county and municipality and effects of the opioid epidemic on each participating community.