Allergan, a Subsidiary of AbbVie, Reaches $2 Billion Opioid Settlement with U.S. States and Local Governments

Intelligent Finance APP learned that, according to reports, Allergan, a subsidiary of AbbVie (ABBV.US), has agreed to reach a $2 billion settlement agreement with various states and local governments in the United States, which will resolve thousands of lawsuits related to the opioid medication Kadian (morphine sulfate). According to the agreement, more than 3,000 lawsuits will be resolved.

On Tuesday, Teva Pharmaceutical (TEVA.US), which also faces multiple opioid liability lawsuits, reached a $4.35 billion settlement agreement with U.S. states and tribes. Other pharmaceutical companies, including Johnson & Johnson (JNJ.US), Purdue Pharma, and drug wholesale distributors AmerisourceBergen (ABC.US), Cardinal Health (CAH.US), and McKesson (MCK.US), reached similar multi-billion-dollar opioid settlements in 2022.

Data shows that more than a dozen companies involved in opioids — including manufacturers, distributors, and pharmacies — are facing nearly 4,000 lawsuits filed by U.S. states, local governments, and tribal leaders. These lawsuits claim that the companies exacerbated the opioid crisis by using deceptive marketing practices that induced millions of Americans to use opioids. The surge in the number of opioid victims has significantly increased the burden on cities in terms of healthcare, law enforcement, and other areas, leading to a severe public health and safety crisis. The lawsuits demand that these companies pay billions of dollars in compensation to combat the opioid epidemic.