Montgomery, AL – In a significant development in the ongoing battle against the opioid crisis, Alabama Attorney General Steve Marshall declared a groundbreaking $220 million settlement with two major opioid distributors, Cardinal Health and Cencora (formerly AmerisourceBergen). This resolution comes as a result of litigation filed by the state against the “Big Three” distributors, including McKesson, in 2022. The settlement represents a critical step in holding entities accountable for their roles in perpetuating the devastating opioid epidemic in Alabama.
Attorney General Marshall, in a press conference, highlighted the State’s decision to decline participation in the national opioid settlement with Cardinal and Cencora. He emphasized that the national proposal failed to adequately acknowledge the unique challenges faced by Alabamians, making the state’s independent pursuit of justice crucial. Marshall asserted, “Today reaffirmed our decision to decline participation in the national opioid settlement with Cardinal and Cencora, as that proposal failed to adequately acknowledge the unique harms faced by Alabamians.”
While recognizing that the settlement cannot bring back those lost to the epidemic, Marshall noted the historic opportunity it presents to ameliorate the harm caused by opioid abuse in Alabama and to propel the state out of this crisis altogether.
According to the terms of the agreement, Cardinal and Cencora will pay a combined $220 million in abatement funds over ten years. This financial commitment is earmarked exclusively for addressing the harms caused by the opioid crisis in Alabama. The funds will be shared with local governments and public hospitals, adhering to a pattern established by previous opioid settlements. The State’s portion of the settlement funds will be deposited directly into the State’s General Fund.
One noteworthy aspect of the settlement is the involvement of the Alabama Opioid Overdose and Addiction Council, which has diligently worked for two and a half years to identify the state’s most pressing needs in the wake of the opioid crisis. The council’s insights will guide the Alabama Legislature as it determines the optimal allocation of the settlement funds to address the far-reaching consequences of opioid abuse.
