
J&J coughs up $40.5M in New Hampshire opioid settlement, evading upcoming trial
J&J has agreed to shell out $40.5 million to settle New Hampshire state’s alleged claims over the company’s role in fueling the US opioid crisis.
The state sued the company in 2018 alleging that J&J’s subsidiaries “aggressively marketed” opioid painkillers and falsely declared them as safer than alternatives. The accusation included that J&J promoted the false concept of pseudoaddiction, which refers to desperate drug-seeking that is caused not by true drug addiction, but rather by undertreatment of pain. In addition, the state alleged the subsidiaries misrepresented that the opioids were rarely addictive when used for chronic pain.
The state also alleged the company marketed opioids to doctors and patients, misrepresenting their addictive properties to treat chronic pain, and targeting vulnerable groups like the elderly, even though opioid use among the elderly carries a heightened risk of overdose, injury and death.
J&J said it took the settlement step in order to “resolve” the upcoming trial which was set to begin on September 12 in Merrimack County, New Hampshire.
“This settlement is not an admission of liability or wrongdoing and marks continued progress in resolving opioid-related claims and litigation by states, cities, counties, and other subdivisions in the United States. The Company will continue to defend against any litigation that the final agreement does not resolve,” the company said in a press release.
Under the terms of the agreement, the company will pay $39 million, plus an additional $1.5 million for which it will be reimbursed from the nationwide settlement fund because New Hampshire did not participate in that settlement.
The state said it had decided to stay out of the national settlement as the opioid crisis in New Hampshire was particularly severe and because New Hampshire had already devoted significant litigation resources at the time the national settlement was announced.
“This resolution provides a positive step forward in ensuring these devastating business practices are not repeated,” Governor Chris Sununu said in a statement.
The settlement imposes a ban on J&J from selling and manufacturing opioids, a promotion of opioids or opioid products prescription savings programs.
In May, J&J announced that it has reached a settlement with West Virginia and agreed to pay $99 million to clear up claims specific to J&J’s alleged role in the state’s opioid crisis.
Meanwhile, J&J had already reached a massive settlement involving dozens of states, throwing down $5 billion alongside drug distributors AmerisourceBergen, Cardinal Health and McKesson in a $26 billion deal meant to clear up most of any pending litigation.