From Tribune Staff Reports
Montgomery – The State of Alabama reached a $220 million settlement on Monday, March 4, with Cardinal Health and Cencora (formerly AmerisourceBergen). The settlement, announced by Alabama Attorney General Steve Marshall, is part of the state’s ongoing litigation in the opioid crisis.
“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,” said Marshall. The State independently filed multiple lawsuits to combat the opioid crisis.
Alabama had already reached settlements totaling over $500 million to resolve claims against drug manufacturers and other entities before the latest settlement was announced.
Trussville was one of several cities in Alabama to vote to participate in the opioid litigations when the lawsuits were announced. The City Council passed a resolution in July of 2022 to participate in the lawsuits and settlements.
“We’ve been on most of the opioid lawsuits and have received some funds in the past but it’s too soon to tell how much the city will get from this settlement,” said Trussville Mayor Buddy Choat. “We really appreciate the attorney general’s work on these cases.”
In the 2022 resolution, city leaders said Trussville has been harmed by the opioid epidemic and they believed it was in the best interest of the community to participate. According to the wording in the resolution, “the city of Trussville finds that participation in the various Opioid Settlements, Settlement Agreement, and Sign-On Agreement is in the best interest of the City of Trussville and its citizens because such a plan would ensure an effective structure for the commitment of Settlement Funds to abate and seek to resolve the opioid epidemic.”
“While this settlement will not 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 and to finally move us out of this epidemic altogether,” Marshall said.
According to the terms of the agreement, Cardinal and Cencora will pay a combined $220 million in abatement funds over ten years. Per the terms of each agreement, the settlement funds are to be used only to remediate the harms caused by the opioid crisis in Alabama.
Cardinal and Cencora will also be responsible for paying fees and costs for the State’s counsel, allowing the State to direct the entirety of the settlement funds to opioid abatement.
The State’s share of the settlement funds will be deposited directly into the General Fund. As with previous opioid settlements, Alabama will share settlement funds with local governments and public hospitals. No determination has been announced on the amount Trussville will receive from the settlements.