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Baltimore gets large settlement from opioid distributor, more may be coming

Oxycodone pills are displayed, Wednesday, Aug. 29, 2018, in New York.  (AP Photo/Mark Lennihan)
Mark Lennihan
/
AP
Oxycodone pills are displayed, Wednesday, Aug. 29, 2018, in New York.

The city of Baltimore will receive $45 million in settlement money from Allergan Finance for its role in the opioid crisis that heavily impacted the city.

The funds will be made available to Baltimore within 30 days.

“We are fully aware of the devastating toll that the actions of these defendants have taken on our city, and we have shown our commitment to ensuring that they pay their fair share to tackle the harms they have left in the wake of their greed,” said Mayor Brandon Scott. “We are committed to ensuring that every penny of this and any other amount recovered is put to its most effective and best use to combat the opioid epidemic in Baltimore city at all levels.”

Baltimore opted out of collective lawsuits filed by states and cities against opioid companies. The city is independently suing a handful of companies like Walmart and Purdue Pharma, stating that Baltimore was disproportionately impacted by the opioid crisis.

The tactic paid off in the Allergan Finance settlement. Maryland will receive a total of $38 million over seven years in a separate settlement with the company. If the city had been part of that settlement it would have only received about $7 million over that time period.

The city is planning on creating a council that will decide the best way to allocate the funds it received from the lawsuits, Scott said in a statement.

About $10 million is already earmarked to go to the Peer Navigator Program and Charm City Care Connection, which offer harm reduction kits, counseling, support groups and wound care.

Baltimore is still in litigation against Johnson & Johnson, McKesson, Cardinal Health, AmerisourceBergen, Walgreens, CVS, Teva and former Insys CEO John Kapoor. The case against those companies goes to trial on Sept. 16.

Allergen Finance manufactured and distributed the drugs Kadian and Norco, which made up half a percent of the opioids sent to Baltimore pharmacies.

The remaining defendants were responsible for 80% of the opioids coming to the city’s drugstores.

Scott is the Health Reporter for WYPR. @smaucionewypr
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