​California's Opioid Settlements

Overview

This page provides information for California and the cities, counties, and other eligible subdivisions (“Participating Subdivisions") regarding the California Opioid Settlements.

On July 21, 2021, a $26 billion offer to settle was made by opioid manufacturer Janssen Pharmaceuticals (parent company of Johnson & Johnson) and the “big three" distributors, McKesson, AmerisourceBergen, and Cardinal Health (“the Distributors") to resolve their liabilities in over 3,000 opioid crisis-related lawsuits nationwide. It's estimated that California will receive approximately $2.05 billion from the Janssen and Distributors (J&D) Settlement Agreements over the next 18 years. The majority of this money will be provided to Participating Subdivisions to be used for opioid abatement activities.

California has joined additional lawsuits against manufacturers, distributors, and other entities responsible for aiding the opioid epidemic and anticipates receiving funds from future opioid judgment and settlement agreements.

Oversight and Administration of Settlement Funds

Pursuant to Government Code, Title 2, Division 3, Part 2, Chapter 6, Article 2, Section 12534, the Opioid Settlements Fund (OSF) was created in the State Treasury. Funds from J&D settlement agreements and funds received from any other future judgments​ or settlements allocated to the state for state opioid remediation, shall be deposited into the OSF.

The Department of Health Care Services (DHCS) shall oversee and administer the OSF and activities funded by the OSF. This includes, but is not limited to, designating additional high-impact abatement activities, conducting related stakeholder engagement, monitoring the California participating subdivisions for compliance, and preparing annual reports.

California Participating Subdivisions receiving J&D Settlement allocations from the CA Abatements Account are required to spend these funds on opioid remediation activities. For a list of allowable activities, please refer to the J&D Settlement Allowable Expenditures resource, which includes C​alifornia’s designated High Impact Abatement Activities and a list of opioid remediation activities from Exhibit E of the National Settlement Agreements. 

Funding Allocations under the J&D Settlement Agreements

The funds received from these Settlement Agreements will be distributed as follows: 15% allocated to the State of California and used for future opioid remediation activities, 70% allocated to the Participating Subdivisions and used for opioid remediation activities, and 15% allocated to the Plaintiff Subdivisions that are Initial Participating Subdivisions. Exact percentages provided to Participating Subdivisions will be based on the percentage schedules found in the J&D California State-Subdivision Agreements.

Funds from the J&D Settlement Agreements must be used specifically for opioid remediation activities. Lists of allowable and required opioid remediation activities utilizing these funds can be found in the J&D Settlement Agreements and the J&D California State-Subdivision Agreements.

Questions on California's Opioid Settlements

Questions about opioid litigation and participation can be directed to the Office of the Attorney General at OpioidSettlement-LocalGovernment@doj.ca.gov.   

Questions about the OSF and oversight of Participating Subdivisions can be directed to DHCS at OSF@dhcs.ca.gov.

Additional Links

 Information on this website will be updated as more information becomes available on California's Opioid Settlements.







Last modified date: 10/27/2022 9:50 AM