June 28 – The U.S. Supreme Court on Thursday rejected, by a 5-4 vote, a complicated settlement between state governments, local governments and Purdue Pharma, the maker of the addictive painkiller OxyContin that has contributed significantly to the nation’s deadly opioid crisis.
The deal, which closed in 2021 but has been in a legal limbo since then, would require Purdue’s owners, the Sackler family, to pay $6 billion over 18 years to victims, states and tribes.
A division of the U.S. Department of Justice has objected to the settlement, arguing it would protect the family from further litigation.
Now the many parties to the original agreement, including Maine, will have to come back to the table to negotiate.
“Purdue Pharma, led by the Sackler family, prioritized significant profits while pushing highly addictive opioids with no regard for the crisis it fueled,” Maine Attorney General Aaron Frey said in a written statement to the Press Herald. “While the Supreme Court’s decision (Thursday) means we have more work to do, my office will continue to litigate to obtain funds from the Sacklers to save lives and combat the opioid epidemic.”
“Make no mistake about our resolve: Confronting the devastation of the opioid epidemic requires that we work to hold accountable the bad actors responsible for it, including the Sackler family.”
What does this mean for Maine? Here’s what we know.
HOW MUCH WOULD MAINE HAVE RECEIVED FROM THE PURDUE LAW?
Maine’s share of the settlement with Purdue Pharma is estimated at $20 million.
ARE THERE OTHER REGULATIONS RELATED TO THE OPIOID CRISIS?
Yes, the agreement with Purdue is one of nine separate settlements negotiated in recent years between the government and major pharmaceutical manufacturers and distributors.
ARE THOSE AGREEMENTS ALSO IN A LIMBO?
No, the Supreme Court ruling only concerns the settlement with Purdue Pharma.
HOW MUCH MONEY WILL MAINE RECEIVE FROM THOSE SETTLEMENTS?
Maine is expected to receive a total of about $235 million over the next 18 years.
The bulk — about $130 million — comes from the so-called “Big Three” prescription drug distributors, McKesson Corporation, AmerisourceBergen and Cardinal Health, and pharmaceutical manufacturer Johnson & Johnson.
An additional $100 million, announced by Frey in March, will come to Maine from five additional settlements with manufacturers Teva and Allergan, and retailers CVS, Walgreens and Walmart.
The remaining $5 million comes from a settlement with another manufacturer, Mallinckrodt.
WHO CONTROLS THE MONEY?
The state has drawn up memoranda of understanding that specify where the money goes and who is responsible for distributing it.
Half of it is managed by the 15-member Maine Recovery Council, which has been meeting regularly for more than a year and has begun allocating its first $9 million in funding.
Twenty percent is overseen by the Attorney General’s Office in a state fund.
The remaining 30% goes to “litigating subdivisions,” which are counties and municipalities throughout Maine – 39 in total.
Cumberland County, for example, will receive about $230,000 annually for the next 18 years. The county’s public health department recently allocated $80,000 to fund a mobile health van to reach people at high risk for overdose.
The city of Portland has also received $750,000 so far, but has yet to decide how to use it and is not expected to begin distributing that money until the fall.
More information is available online at: https://www.maine.gov/ag/opioids/2023-opioid-settlements.html
HOW IS THE MONEY SPENT?
Under the memoranda of understanding, all funds must be used for opioid reduction strategies, including prevention, harm reduction, treatment and recovery programs.
The settlement with Purdue included provisions for compensation to families of overdose victims.
WHAT HAPPENS WITH THE PURDUE LAW NEXT MONTH?
Although the Supreme Court rejected the initial settlement, the parties will negotiate another deal to settle the Purdue case. But whether that agreement will be larger or smaller is uncertain, and it could be months or longer before all parties can agree. Any future agreement is also subject to judicial review.
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