McKinsey
On February 24, 2021, Attorney General Josh Stein announced a $573 million multi-state settlement with McKinsey & Company, resolving investigations into the company’s role in advising opioid companies how to promote their drugs and profit from the opioid epidemic. The settlement provides nearly $19 million over five years for North Carolina, with all funds devoted to addressing the opioid epidemic. Read the press release.
Publicis
On February 1, 2024, Attorney General Josh Stein announced a $350 million multi-state settlement with Publicis Health to resolve investigations into the global marketing and communications firm’s role in the prescription opioid crisis by helping opioid manufacturers market and sell opioids. The settlement provides more than $11 million for North Carolina, with all funds devoted to addressing the opioid epidemic. Read the press release.
Mallinckrodt
Attorney General Josh Stein was a lead negotiator in achieving a national settlement with the opioid manufacturer Mallinckrodt. As a result of the bankruptcy reorganization plan approved by the United States Bankruptcy Court for the District of Delaware, which became effective in June of 2022, Mallinckrodt was required to pay approximately $10.8 million to help address the opioid crisis in North Carolina. These payments were made in January and November of 2022. North Carolina’s share of the Mallinckrodt payment is distributed among state and local governments pursuant to the North Carolina Memorandum of Agreement on the use of opioid settlement funds.
Endo
As a result of the bankruptcy reorganization plan approved by the United States Bankruptcy Court for the Southern District of New York, which became effective in April of 2024, the drug maker Endo will pay approximately $10 million to help address the opioid crisis in North Carolina. This payment is expected to occur in fiscal year 2024-25. North Carolina’s share of the Endo payment is distributed among state and local governments pursuant to the North Carolina Memorandum of Agreement on the use of opioid settlement funds.
Purdue
In May 2018, Attorney General Josh Stein sued drug maker Purdue Pharma over deceptive marketing practices that created and fueled the opioid epidemic. In September 2019, he sued eight members of the Sackler family, which owns Purdue, alleging they were the driving forces behind Purdue Pharma’s misconduct. Purdue Pharma filed for bankruptcy in September 2019, which prevented the lawsuits against it and the Sackler family from proceeding.
In June 2024, the U.S. Supreme Court rejected Purdue Pharma’s bankruptcy plan that would have required the company and the Sackler family to make billions of dollars available nationwide to fund efforts to remediate the opioid crisis, including an estimated $100 million for North Carolina.
Discussions about a new plan are underway. If a new plan is developed and approved that allows for the allocation between a state and its political subdivisions to be set through a state-specific agreement, North Carolina’s share of the payments would be distributed among state and local governments pursuant to the North Carolina Memorandum of Agreement on the use of opioid settlement funds.