Attorney General Bob Ferguson (AG) announced five resolutions with drug companies totaling over
$400 million for Washington state and eligible local governments. Combined with the $518 million from the 2022 agreement with three major opioid distributors, the AG estimates that Washington’s total opioid-related recovery will now be more than $1.1 billion.
The AG’s office estimates that Washington would receive $434 million from five new settlements:
- $110.6 million from CVS paid over 10 years.
- $120.3 million from Walgreens over 15 years.
- $62.6 million from Walmart, 97% of which would be paid in the first year.
- $90.7 million from Teva over 13 years.
- $50 million from Allergan over 7 years.
After legal fees, funds will go to state and eligible local governments for opioid remediation.
A sign-on package will be coming to eligible cities before the end of February 2023. After they receive the package, they will have 90 days to sign on to each of the five Participation Forms as well as another Allocation Agreement. The process is expected
to be streamlined but modeled on the one used for the distributor settlement. Eligible cities include those with a population over 10,000 prior to 2018.
Other updates:
- The AG filed a lawsuit against Albertsons, Krogers, and Rite Aid for their role in the state’s
opioid epidemic. We will keep you updated as this case evolves.
- Cities who signed on to the first agreement with the three major opioid distributors (McKesson Corp., Cardinal Health Inc., and AmerisourceBergen Drug Corp.) for $518 million should have received their first payment in December. The settlement will be paid out over 17 years.
- The Settlement Administrator paid $11.7 million to Washington cities and counties on December 30, 2022. Additional cities will receive their payment in mid- or late- January.
- A few eligible local governments still need to sign up on the administrator’s payment portal to receive the initial payment and should reach out to the payment administrator with questions.
- Eligible cities should have received an email in December from the payment administrator with instructions on how to sign up. The State has received the full amount of its initial payments.
- The Governor’s budget proposed a focus on treatment and services with the state’s portion of the first settlement. The Legislature will be deciding whether to accept the governor’s proposals or replace them with their own strategies for
opioid remediation.