AG Paxton Announces $2.37 Billion Agreement to Settle with Former Opioid Maker

Ken Paxton, Texas Attorney General

AUSTIN – (News Release) Attorney General Paxton and a bipartisan group of attorneys general announced an agreement in principle to address the opioid crisis. The proposed settlement would require the former opioid maker Allergan to pay up to $2.37 billion to participating States and local governments.   

 Once finalized, the combined Allergan and Teva settlements would provide as much as $6.6 billion nationwide. Both settlements remain contingent on resolution of key issues regarding the settlement structure. The parties are also negotiating terms requiring reformed business practices and increased transparency.   

 “I am proud to announce a major win for Texas with our settlement with Allergan,” Attorney General Paxton said. “I will continue to hold opioid manufacturers responsible for deceiving patients and the medical community, while ensuring that victims of this tragic epidemic receive the assistance they need.”  

 Ireland-based Allergan formerly made Norco, Kadian-branded, and generic opioids. The company sold its generics portfolio to Teva in 2016. Earlier this week, Teva and the coalition of attorneys general announced an agreement in principle to a settlement valued at $4.25 billion.  

 The coalition of states alleged that Allergan:  

• Deceptively marketed opioids by overstating their benefits and downplaying the risk of addiction, and by encouraging doctors to prescribe more opioids to treat patients showing signs of addiction; and

• Failed to maintain effective controls to prevent diversion of opioids.

The $2.37 billion figure includes money that Allergan has already agreed to pay under settlements with individual States.  

 The negotiations are being led by Texas, California, Iowa, Illinois, Maryland, Massachusetts, New York, North Carolina, Pennsylvania, Tennessee, Vermont, Virginia, and Wisconsin. While New York was among the 13 States integral to negotiating this settlement, New York settled separately with Allergan in December 2021.