New Hanover County Could Get $19M In Opioid Litigation

Introduction

New Hanover County and the city of Wilmington could receive $19 million-$20 million and $850,000 respectively in multistate lawsuits involving drug manufacturers and distributors to tackle the opioid epidemic.

The lawsuits allege that the drug manufacturers and distributors are responsible for fuelling the opioid epidemic in the county and the city. The settlement amount is just an estimation that might change if required. Drug distributors Cardinal, McKesson, and AmerisourceBergen and opioid manufacturers Johnson & Johnson and Purdue Pharma are liable to make the settlements in the lawsuits.

Earlier, in February, the attorney general ordered a $573 million multistate settlement against McKinsey & Company as the management consultant alleged advising Purdue about maximizing profits by increasing the sale of opioid products.

Currently, 76 counties and eight municipalities are involved in litigation against the opioid manufacturers and distributors; now, hundreds of state counties stand a chance to sign the five-company agreement by Oct. 1.

The executive director of the county commissioners group said that the current arrangement of the settlement would provide 15% of state settlement funds in direct payments to local governments, which is comparatively less.

36 counties and 10 municipalities have signed the agreement until now. The share of the New Hanover County's fund stands at 2.897%, whereas the city of Wilmington’s share stands at 0.119%. The chief communications officer of New Hanover County said that the share distribution is drafted by the experts employed by the outside counsel for local governments.

Participants signing the agreement need to follow governing rules set by the attorney general, which has two options.

Option A: Local governments have complete right to use the funds for various initiatives like funding programs or services, evidence-based addiction treatment, naloxone distribution, recovery housing support, employment-related services, criminal justice diversion programs, etc.

Option B: Authorities may involve in a collaborative strategic planning process in coordination with community stakeholders who would help develop plans to address issues of over-prescription or misuse of opioids.

The New Hanover County will effectively work with the city of Wilmington to make sure that the funds are efficiently used for the ones who need them.

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