St. Charles City Council opts-in on national opioid settlement

Facing an opt-in deadline, St. Charles City Council members have approved a resolution authorizing the city’s participation in the new national opioid settlements.

Per the national settlement in 2021, several pharmaceutical distributors already have begun paying fines of up to $21 billion over 18 years. Last year, five more national settlement agreements were reached with pharmacy chains CVS, Walgreens and Walmart, and manufacturers Allegran ad Teva.

City Attorney Nicholas Peppers said it is still unclear when the recent settlement will be finalized, how much the city will be paid, and when the city will begin receiving funds. The city council authorized St. Charles’ participation at its April 17 meeting.

State and local governments that wanted to participate in the national settlements had to opt in by April 18.

According to the National Opioid Settlement website, the greater the level of subdivision participation, the more funds ultimately will be paid out for abatement.

Assuming maximum participation in the new settlement, Teva will be required to pay up to $3.4 billion over the next 13 years, Allergan to pay up to $2.02 billion over 7 years, CVS to pay up to $4.90 billion over 10 years, Walgreens to pay up to $5.52 billion over 15 years, and Walmart to pay up to $2.74 billion in 2023, according to the national opioid settlements’ executive summary.

Peppers said the heavy lifting of the settlement is being handled by Illinois Attorney General Kwame Raoul’s office. The next step will be for Raoul’s office to compile the municipalities who opted in.

Under both settlements, states and municipalities are required to use 85% of funds received on programs that will help address the ongoing opioid crisis through treatment, education and prevention efforts.

In addition to the billions of dollars in settlement dues, the defendants in both settlements also must abide by new restrictions on the way they manufacture, distribute, market and sell opioid products. Johnson & Johnson will not be able to market or sell any opioid products for the next 10 years.

Additional information can be found at nationalopioidsettlement.com.