Texas receives $290m settlement on Johnson & Johnson opioid case
This Aug. 29, 2018, file photo shows an arrangement of Oxycodone pills in New York. A $26 billion settlement between the three biggest U.S. drug distribution companies and drugmaker Johnson & Johnson and thousands of states and municipalities that sued over the toll of the opioid crisis is certainly significant, but it is far from tying a neat bow on the tangle of still unresolved lawsuits surrounding the epidemic. (AP Photo/Mark Lennihan, File)

Texas Attorney General Ken Paxton announced a $290 million settlement agreement Tuesday with pharmaceutical giant Johnson & Johnson over what the state claims were deceptive marketing tactics that contributed to the ongoing opioid crisis.

In July, he announced Texas had joined a $26 billion multistate opioid settlement with McKesson, Cardinal Health and AmerisourceBergen, as well as Johnson & Johnson. Paxton said Tuesday that the state expects to receive $1.2 billion from the three other companies, bringing the stateโ€™s total to $1.5 billion.

Hundreds of lawsuits accuse the distributors of carelessly overlooking the alarming numbers of pills ordered by pharmacies across the country over the last two decades. Johnson & Johnson, the lawsuit alleges, downplayed its productsโ€™ addictive properties.

All four companies have denied wrongdoing in the case. In a press release Tuesday, Johnson & Johnson said the settlement is not โ€œan admission of any liability or wrongdoingโ€ and added that its prescription opioid medications โ€” which are no longer available in the U.S. โ€” accounted for less than 1% of total opioid prescriptions in Texas and the U.S.

Paxton said that โ€œJohnson & Johnson is finally being held financially accountable,โ€ but the state will continue pursuing legal action against drug companies that contributed to the opioid crisis.

โ€œWeโ€™re not done going after these other companies,โ€ Paxton said Tuesday outside the Houston Recovery Center. โ€œThereโ€™s many more to come.โ€

The settlement money will become available to the state on Jan. 1, and Paxton said it will be used to help solve the opioid crisis.ย The settlement saidย 70% of the money will go to the Texas Opioid Abatement Fund through the Texas Opioid Council, which will approve strategies for reducing opioid abuse.

From 1999 to 2019, nearly half a million people in the United States died from opioid-related overdoses, according to the Centers for Disease Control and Prevention. Opioid deaths nationally increased by 30% last year, Paxton noted Tuesday.

Opioids were involved in nearly 70% of all drug overdose deaths in Texas in 2018, according to the National Institute on Drug Abuse. The number of deaths involving prescription opioids declined by 4.6% that year.

Harris County โ€” one of many local governments joining the settlement โ€” is set to receive $3.9 million under the agreement.

โ€œThis settlement is a first and important step in righting the wrongs caused by the companies responsible for the opioid epidemic,โ€ Harris County Attorney Christian D. Menefee said in a written statement. โ€œFamilies have lost loved ones and communities have been ravaged, including here in Harris County. I expect this will be the first of several settlements against the companies we sued, and I look forward to continuing this fight for Harris County residents.โ€

The settlement will help fund opioid harm reduction in communities, Dallas County Judge Clay Jenkins said in a written statement.

โ€œDallas County, like so many communities throughout Texas, has been hard hit by an opioid epidemic that was caused and fueled by drug company misconduct,โ€ Jenkins said in the statement. โ€œThrough this settlement, which is the best of its kind in the nation, one of those companies, Johnson & Johnson, has been held to financially account for its role in this crisis.โ€