Attorney General Paxton announced that Texas is participating in a $2.37 billion settlement with opioid manufacturer Allergan for its role in the opioid epidemic in the country. The agreement on principles was there before launched in July 2022. Under the settlement, more than $135 million has been designated for Texas and its local governments. Allergan will pay participating states and governments over a seven-year period.
The company previously made generic opioids as well as Norco- and Kadian-brand opioids. Allergan sold its specialty products, including opioid products, to Teva in 2016. The state negotiated agreements with Allergan and Teva Pharmaceuticals. Texas settled with Teva in February 2022 for $150 million in cash and $75 million worth of Narcan, a life-saving opioid used by first responders.
The coalition of states alleged that Allergan misrepresented opioids by downplaying the risk of addiction, exaggerating their benefits, and encouraging doctors to treat patients showing signs of addiction with by prescribing certain opioids. They also alleged that Allergan failed to maintain effective controls to prevent the misuse of opioids.
“I am happy to announce yet another decision to help answer for those who made and aggravated this tragedy,” said Attorney General Paxton. “This settlement will not only help get justice for those who have suffered because of Allergan’s reckless actions, but will also raise funds to stop the distribution of opioids and help individuals who struggle with addiction.”
Under the agreement, Allergan must share clinical information through a third-party registry, disclose documents through a public pharmacy, and stop selling opioids. Allergan also may not fund or provide assistance to third parties to promote opioids or lobby on opioid-related issues.
This agreement is one of several opioid settlements that Attorney General Paxton has negotiated for Texas. Attorney General Paxton has secured more than $2.5 billion for Texas from those who harmed the opioid crisis, including Allergan, Wal-Mart, CVS, Mallinckrodt, Teva, Endo, Johnson & Johnson, McKinseyetc.