MONTGOMERY — The State of Alabama settled for $220 million with two opioid distributors over their role in the opioid crisis.
Cardinal Health and Cencora (formerly AmerisourceBergen) are two of the "Big Three" distributors the State initially filed suit against in 2022, according to Alabama Attorney General Steve Marshall.
"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," Marshall said in a statement. "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."
Per the terms of the agreement, Cardinal and Cencora will pay out a combined $220 million in abatement funds over 10 years. The settlement funds are to be used only to remediate the harms caused by the opioid crisis in Alabama. As with previous opioid settlements, the State will share funds with local governments and public hospitals. The State's share of the settlement funds will be deposited directly into its General Fund.
Cardinal and Cencora will also be responsible for paying fees and court costs, allowing the State to direct the entirety of the settlement funds to opioid abatement.
Alabama had already reached settlements totaling over $500 million to resolve claims against drug manufacturers and other entities over their roles in the crisis.
In November, Marshall sent a letter to local leaders statewide emphasizing the importance of implementing long-term strategies and warning that any non-approved allocations of settlement dollars could cost the State future payments from the opioid defendants.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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