Alabama Reaches $220 Million Settlement with Opioid Distributors

The State of Alabama has settled with two opioid distributors, resolving litigation for their roles in the state’s opioid crisis.

Beasley Allen is pleased to announce a $220 million settlement with opioid distributors Cardinal Health and Cencora (formerly AmerisourceBergen) to resolve the opioid crisis litigation in Alabama.

The case was successfully resolved after more than a year and a half of litigation in Montgomery County Circuit Court.

The terms of the agreement call for Cardinal and Cencora to pay $220 million in abatement funds over ten years instead of the maximum of $180 million over 18 years offered in federal multidistrict litigation.

Cardinal and Cencora will also pay fees and costs for the State’s counsel. This allows the State to direct all settlement funds to opioid abatement.

As in previous opioid settlements, the State will share the settlement funds with local governments and public hospitals. The State’s portion of the settlement funds will be deposited directly into the State’s General Fund.

“While this settlement cannot bring back those lost to this devastating epidemic, it presents a historic opportunity to ameliorate the harm that opioid abuse has caused in our communities,” Alabama Attorney General Steve Marshall said.

“Our team worked tirelessly to ensure that the State received a fair and just outcome, and we hope that this settlement will serve as a step towards healing and recovery for our communities,” said Beasley Allen Toxic Torts Section Head Rhon Jones.

Along with Jones, the State of Alabama was represented in this matter by Jeff Price, Matt Griffith, Elliot Bienenfeld, Gavin King, Elizabeth Weyerman and the late Rick Stratton of Beasley Allen; Josh Hayes and Bob Prince of Prince Glover Hayes; and Attorney General Steve Marshall, Clay Crenshaw and Michael Dean of the Alabama Office of the Attorney General.