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.

The 2021-2022 state budget devoted $15.7 million from the McKinsey settlement to expanding employment and transportation supports for individuals in recovery from opioid use disorder, supporting individuals with opioid use disorder who are involved in the criminal justice system, expanding evidence-based treatment supports and improving connections to care, and developing evidence-based supportive housing services. The North Carolina Department of Health and Human Services selected 20 health care centers, treatment clinics and community-based providers throughout the state to spend the money on the specified purposes. Read the press release.

Mallinckrodt

Attorney General Josh Stein was a lead negotiator in achieving a national settlement with the opioid manufacturer Mallinckrodt.  Under the settlement, Mallinckrodt filed for bankruptcy in October 2020 and agreed to pay $1.725 billion over eight years into a trust that will go toward abating the opioid crisis. This includes an estimated $35 million coming to North Carolina communities to support treatment, recovery, harm reduction, and other life-saving programs and services. North Carolina’s share of the Mallinckrodt payment will be distributed among state and local governments pursuant to the North Carolina Memorandum of Agreement on the use of opioid settlement funds. A bankruptcy court approved the settlement in February 2022, and Mallinckrodt exited bankruptcy and made its first payment in June 2022.