AG Camacho Announces $2.37 Billion Agreement with Former Opioid Maker Allergan Bringing Total Proposed Settlements to $6.6B In the Last Week

August 03, 2022- Tamuning, Guam- Attorney General Leevin T. Camacho and a bipartisan group of attorneys general announced an agreement in principle to address the opioid crisis for the second time within a week. The proposed settlement on important financial terms would require former opioid maker Allergan to pay up to $2.37 billion to participating states, territories, and local governments, including Guam.

“Over the last week our office has secured settlements that, if finalized, will provide over $6 billion to address the opioid epidemic in Guam and nationally,” said AG Camacho. “In the coming weeks, we will be meeting with the Opioid Advisory Council to talk about how these funds will most effectively help those struggling with addiction.”

The Allergan settlement, together with the Teva Pharmaceuticals settlement announced this week, would provide as much as $6.6 billion nationwide, including for abatement of the crisis. Abbvie, which acquired Allergan in 2020, disclosed the agreement in its earnings announcement last week.

Both settlements remain contingent on resolution of key issues, including details regarding the settlement structure, which is expected to build on the framework developed in prior nationwide opioid settlements. The parties are also negotiating terms requiring business practice changes and transparency.

Ireland-based Allergan formerly made Norco- and Kadian-branded and generic opioids. The company sold its generics portfolio, including opioid products, to Teva in 2016. Teva and the AGs announced that they had reached an agreement in principle to provide up to $4.25 billion to address its part in the opioids crisis. The Teva agreement in principle is contingent, in part, on Allergan reaching its own settlement with the states and jurisdictions.

The coalition of states alleged that Allergan:

● Deceptively marketed opioids by downplaying the risk of addiction, overstating their benefits, and encouraging doctors to treat patients showing signs of addiction by prescribing them more opioids; and
● Failed to maintain effective controls to prevent diversion of opioids.

The $2.37 billion figure includes money that Allergan has already agreed to pay under settlements with individual states and jurisdictions.

The negotiations are being led by California, Iowa, Illinois, Maryland, Massachusetts, New York, North Carolina, Pennsylvania, Tennessee, Texas, Vermont, Virginia, and Wisconsin. While New York was among the 13 states integral to negotiating this settlement, New York settled separately with Allergan in December 2021 as a part of its trial.