AG Curtis Hill announces support for $1.6 billion settlement framework with opioid manufacturer

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Attorney General Curtis Hill is supporting a global settlement framework agreement between state attorneys general, other governmental units and drugmaker Mallinckrodt (MNK), its subsidiaries and certain other affiliates.

As part of the framework, MNK — currently the largest generic opioid manufacturer in the United States — agrees to pay $1.6 billion to a trust that will cover the costs of opioid addiction treatment and related efforts, with the potential for increased payment to the trust. MNK also agrees that its future generic opioid business will be subject to stringent injunctive relief that, among other things, will prevent marketing and ensure systems are in place to prevent diversion. The agreement is intended to settle opioid-related claims against the company.

“This agreement is an important step toward providing relief to Hoosiers hurt by the exploding opioid crisis,” Attorney General Hill said. “My office will work tirelessly to ensure that Indiana continues to receive the resources necessary to deal with the tragic fallout of drug abuse and addiction.”

Attorney General Hill has been active in investigating and pursuing solutions against bad actors involved in this unprecedented crisis. In November 2018, Attorney General Hill filed a lawsuit against Purdue Pharma, the manufacturer of OxyContin. The lawsuit alleged that Purdue Pharma intentionally understated the dangerous health risks of long-term opioid use and deceptively marketed their drugs in a way that violated Indiana law.

Attorney General Hill also filed a lawsuit in May 2019 against individual members of the Sackler family, which controlled the majority of Purdue Pharma’s board of directors from 1990 through 2018.

Purdue Pharma declared bankruptcy in September 2019 after an onslaught of lawsuits, including Indiana’s litigation. Indiana is actively involved in the bankruptcy proceeding to ensure that it receives any funds to which it is entitled under the law.

In October 2019, Attorney General Hill filed a lawsuit against three primary distributors of opioids: Cardinal Health, McKesson Corp. and AmerisourceBergen Drug Corp. Attorney General Hill alleged in the lawsuit that the distributors played an integral role in the explosion of the opioid crisis and profited from that role.

“Opioid manufacturers and distributors must be held accountable for their roles in this crisis, which has led to deadly consequences,” Attorney General Hill said.

Opioids are a class of drugs that include prescription painkillers and illegal drugs such as heroin. Nationwide, prescription and illegal opioids are the main cause of drug overdose deaths. According to the Centers for Disease Control and Prevention, opioids were involved in more than 47,600 overdose deaths in 2017. From 1999 to 2017, more than 702,000 people have died from a drug overdose.