The State of Alabama has reached a $220 million settlement with opioid distributors, Cardinal Health and Cencora (formerly AmerisourceBergen), to resolve litigation surrounding the state's opioid crisis. The agreement, announced by Beasley Allen, marks a significant step towards addressing the impact of opioid abuse in Alabama.
Alabama Attorney General Steve Marshall expressed the significance of the settlement, stating, "While this settlement cannot bring back those lost to this devastating epidemic, it presents a historic opportunity to ameliorate the harm that opioid abuse has caused in our communities."
Rhon Jones, the Toxic Torts Section Head at Beasley Allen, highlighted the efforts that went into securing the settlement, saying, "Our team worked tirelessly to ensure that the State received a fair and just outcome, and we hope that this settlement will serve as a step towards healing and recovery for our communities."
The terms of the agreement require Cardinal and Cencora to pay $220 million in abatement funds over a ten-year period, deviating from the federal multidistrict litigation offer of $180 million over 18 years. Additionally, the distributors will cover fees and costs for the State's counsel, allowing all settlement funds to be directed towards opioid abatement efforts.
Similar to previous opioid settlements, the State of Alabama will share the settlement funds with local governments and public hospitals, with the State's portion being deposited into the General Fund.
In addition to Rhon Jones, the legal representation for the State of Alabama included a team from Beasley Allen and attorneys from Prince Glover Hayes, as well as officials from the Alabama Office of the Attorney General.