The largest settlement ever obtained from an opioid manufacturer or distributor sued by the state, Attorney General Letitia James announced Thursday that New York would receive up to $524 million from pharmaceutical company Teva to settle claims that the company contributed to the American opioid epidemic.
Following a lawsuit filed by the attorney general in 2019 alleging drug corporations of misleading marketing and failing to stop the illegal diversion of restricted substances, the state has negotiated several agreements with those businesses.
Last year, a jury in Long Island found Teva Pharmaceuticals USA, Inc. and its affiliates accountable for allegations of public nuisance.
According to James, Teva agreed to pay out $313 million over 18 years to end the remedies phase.
According to the attorney general, if a $4.3 billion federal settlement reached by Teva in July is authorized by the state, local, and tribal governments, New York will also receive $211 million.
The arrangement, according to James, puts an end to her legal action against the firms.
Teva was the final opioid defendant left standing that wasn’t financially bankrupt.
She claimed that the state has more than $2 billion set aside to fight the drug epidemic.
New York established a settlement fund to designate the funds for mitigation, treatment, and preventative initiatives in hard-hit neighborhoods.
“This is a landmark day in our battle against the opioid crisis, and I am proud to be able to deliver critical funding and resources to the communities Teva and other companies ravaged with their rampant misconduct,” James said in a prepared release.
The pact forbids the marketing of opioids, places limitations on political lobbying, and outlaws the use of high-dose opioids.
Teva received a comment-request email.