opioid settlement

Matt Landers wasn’t quite ready to go on record with an official comment about a nearly $15 million settlement of two opioid-related lawsuits, but both cases will mean some money for Genesee County, he said.

Landers was hesitant to count those proverbial chickens before finding out exactly how much the county would be receiving as part of a national class action lawsuit against each, the national Big Box retailer Target and Henry Schein, a worldwide distributor of medical and dental supplies, including vaccines, pharmaceuticals, financial services and equipment. 

During Wednesday’s Ways & Means Committee meeting, county Attorney Mark Boylan briefed the group that both cases had been settled and that the county would receive a portion of the $900,000 settlement from Henry Schein and $14 million from Target.

“So this was part of the class action suit. I think every county in New York State is involved, as well as municipalities, towns, and villages,” Boylan told The Batavian, answering about a potential timeline for payment. “I would expect all the agreements have to be executed by all the municipalities before those wheels start to turn and checks are issued, so I would say probably in the next six or eight months.”

Genesee County is one of 62 counties in New York State likely to be sharing in that pot of $14,900,000.

The lawsuit alleged several causes of action against distribution defendants Target and Henry Schein based on claims that each company contributed to the opioid epidemic by failing to comply with their obligations under the Federal Controlled Substances Act and the New York Controlled Substance Act in order to implement adequate measures to prevent diversion of the prescription opioids that they distributed to pharmacies, all of which contributed to a public health crisis in the County of Genesee.

Genesee County could receive around $1 million to battle the opioid epidemic in funding from New York State’s legal settlement with various manufacturers and distributors which have been deemed responsible for perpetuating the opioid crisis.

Attorney General Letitia James announced today that she will be embarking upon a “HealNY’ tour to dole out up to $1.5 billion to all regions of the state. All 62 counties in New York will receive funds from the settlements.

CLICK HERE for today’s press release from James’ office.

Genesee County Manager Matt Landers reacted to the news that the county is in line to get anywhere from $597,359.78 to $1,043,594.62.

“We will be meeting internally and with related agencies to better understand where we should put those monies and what limitations there are to those monies, so hopefully we will have a plan relatively soon,” he said. “It’s quite a large range so, until we know better what the exact amount is, that is going to drive what we want to fund.”

Landers said he will set up meetings with stakeholders such as Genesee County Mental Health and Genesee/Orleans Council on Alcoholism and Substance Abuse, Genesee & Orleans Public Health and law enforcement “to set up a game plan where we can get the most bang for the buck.”

He also noted that the Genesee-Orleans-Wyoming Opioid Task Force already is receiving some grant money but suggested that this new influx of funding could be used to keep that initiative going for a longer period of time.

Per James’ press release, the Finger Lakes Region is expected to receive between $28,886,077.70 and $52,744,110.35 with other GLOW Region counties set to receive as follows:

• Livingston County: $570,600.77-$996,846.31;

• Orleans County: $347,049.64–$606,299.83;

• Wyoming County: $346,041.37–$604,538.38.

Genesee County stands to receive more than $400,000 via a settlement between New York State and the pharmaceutical companies comprising the Johnson & Johnson brand for their role in contributing to the nation’s opioid epidemic.

The county’s Human Services Committee today, on the advice of County Attorney Kevin Earl, recommended adoption of a resolution that would enable Genesee to participate in the New York Opioid Sharing Agreement.

The settlement, negotiated by New York Attorney General Letitia James, would provide Genesee County with a sum between $177,000 and $413,000, Earl said, with approximately half of the money to be "front-loaded" as an initial payment representing the first three years – possibly as soon as February 2022.

"It is my understanding that the balance will be paid over the next nine years on the state's remaining 10-year payments," he added.

Earl said the actual amount is on a sliding scale, depending upon the number of municipalities opting in.

He said there is a good chance that the county would get its full share of the settlement funds, which could be as high as $229 million to New York State.

The resolution passed by the HSC (which is subject to approval by the full legislature next week) alleges several causes of action against defendants Johnson & Johnson, and affiliates based on claims that J & J contributed to the opioid epidemic by falsely promoting prescription opioids it manufactured and sold and by falsely promoting the increased use of opioids directly and generally through various “front groups” and failing to implement measures to prevent diversion of prescription opioids in connection with distribution of its products, all of which contributed to a public health crisis in the County of Genesee.

As reported previously on The Batavian (see link below), Genesee County has retained the services of Napoli Shkolnik PLLC of New York City to litigate on its behalf. Earl said this firm and another based in New York City represent the vast majority of municipalities in New York State.

Earl said two other law suits are in the works – one against Pharma, maker of oxycontin, which has filed bankruptcy (reorganization) and the other against the distributors of these powerful drugs.

“That’s three potential bites of the apple (for the county),” he said.

Any funds received in the Johnson & Johnson case would have to be used in areas related to expenses incurred as a result of the opioid epidemic, Earl said, although “there is quite of bit of flexibility” in the guidelines.

Those uses would include treatment/support groups, prevention, training, first responders and research. Allocation of the funds is being coordinated by the NYS Office of Addiction Services and Supports.

Previously: GCASA director: Multimillion dollar deal with opioid distributors would 'stabilize' treatment system