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Settlement Overview
As of the 2024 fiscal year (July 1, 2023 – June 30, 2024), Maryland has received distributions through seven prescription opioid-related legal settlements. Maryland’s Opioid Restitution Fund was established in 2019 to receive any funds received at the state level, whether designated for use at the state’s discretion or to be distributed to local subdivisions.
The Opioid Restitution Fund, national settlement agreements, and Maryland’s a State Subdivision Agreement all place restrictions on the use of settlement funds in Maryland. The allocation of funds between the State of Maryland and local subdivisions varies by settlement.
As of the end of the 2024 fiscal year (FY), Maryland has received $201,193,722.52, $158,381,575.35 of which was deposited into the Opioid Restitution Fund and $42,812,147.12 of which was distributed directly to local jurisdictions.
Finalized Settlements (as of the 2024 fiscal year)
McKinsey & Company Settlement
A settlement related to consumer protection charges resulting from marketing plans developed by the firm for multiple prescription opioid manufacturers. Funds from this settlement were distributed directly to the State of Maryland and were not bound by the requirements of the State-Subdivision Agreement (more information below).
- Maryland’s Total Anticipated Proceeds: $12,084,129
- Time frame: 4 years (starting in 2022)
- Funds received to date: $11,567,111.21
Janssen Settlement (McKesson, Cencora, and Cardinal Health)
A settlement in 2021 with Johnson & Johnson and three prescription opioid distributors, McKesson, Cencora (formerly known as AmerisourceBergen), and Cardinal Health, related to claims of deceptive marketing practices and negligent monitoring of prescription opioid sales.
- Maryland’s Total Anticipated Proceeds: $395 million
- Time frame: 18 years (starting in 2022)
- Funds received to date: $105,170,427.79
Walmart
A settlement related to claims of failing to investigate suspicious prescriptions for opioids.
- Maryland’s Total Anticipated Proceeds: $55,473,854.51
- Time frame: 6 years (starting in 2024)
- Funds received to date: $53,077,656.21
Walgreens
A settlement related to claims of failing to investigate suspicious prescriptions for opioids.
- Maryland’s Total Anticipated Proceeds: $74,763,582.54
- Time frame: 15 years (starting in 2024)
- Funds received to date: $11,754,148.58
Allergan
A settlement surrounding claims of deceptive marketing practices promoting the perception opioid, Kadian, which was described as safer than other prescription opioids.
- Maryland’s Total Anticipated Proceeds: $38,166,449.66
- Time frame: 7 years (starting in 2024)
- Funds received to date: $11,754,148.58
Teva
A settlement surrounding the claims that the firm encouraged prescribing of its high-strength fentanyl products beyond FDA-approved uses.
- Maryland’s Total Anticipated Proceeds: $70,281,866.66
- Time frame: 13 years (starting in 2024)
- Funds received to date: $5,874,795.26
Publicis Health
A settlement surrounding claims that a marketing strategy that Publicis Health helped to develop for Purdue Pharma encouraged inappropriate prescribing of OxyContin. Funds from this settlement were distributed directly to the State of Maryland and were not bound by the requirements of the State-Subdivision Agreement (more information below).
- Maryland’s Total Anticipated Proceeds: $7,239,389.04
- Time frame: One-time payment
- Funds received to date: $7,239,389.04
State-Subdivision Agreement
An agreement between the State of Maryland and local municipal subdivisions (known as the “State-Subdivision Agreement”) describes how funding from certain settlements will be distributed among Maryland subdivisions through the Opioid Restitution Fund. Funding under this agreement must comport with Exhibit E of the national settlement. This agreement was originally established in 2022 to govern the allocation of Janssen settlement funds. It was updated in 2024 to include proceeds from settlements with Walmart, Walgreens, Allergan, and Teva.
The State-Subdivision Agreement identifies four distinct funding streams, and it requires participating subdivisions to implement Local Abatement Plans that identify allowable uses for funds they receive. A memo from the Maryland Attorney General’s office issued on November 7, 2022, provides additional detail regarding the allocation of these funds among local subdivisions.
- State Allocation (15% of settlement funding): Funds that may be used at the discretion of the state for opioid abatement purposes.
- Subject to ORF Advisory Council recommendations.
- Targeted Abatement Fund (45% of settlement funding): State-administered funding that is distributed to local subdivisions on a formula basis.
- Under this, eight “Qualifying Charter Counties” were identified that are eligible to receive funding within 30 days of the deposit of annual installments in the Targeted Abetment Subfund. The remaining 51 subdivisions must submit “Local Abatement Plans” and participate in a block grant program administered by the Maryland Department of Health to receive their portion of these funds.
- The eight qualifying Charter Counties include Baltimore City* and Anne Arundel, Baltimore, Frederick, Harford, Howard, Montgomery, and Prince George’s Counties.
- Not subject to ORF Advisory Council recommendations.
- Under this, eight “Qualifying Charter Counties” were identified that are eligible to receive funding within 30 days of the deposit of annual installments in the Targeted Abetment Subfund. The remaining 51 subdivisions must submit “Local Abatement Plans” and participate in a block grant program administered by the Maryland Department of Health to receive their portion of these funds.
- State Discretionary Abatement Fund (15% of settlement funding): Funds that may be used at the discretion of the state for opioid abatement purposes after considering grant applications from local subdivisions with a population of less than 10,000 people.
- Subject to ORF Advisory Council recommendations.
- Direct Payments to Local Subdivisions (25% of settlement funding): These funds are provided directly to local subdivisions.
- Direct payments are not allocated through the ORF.
- Not subject to ORF Advisory Council recommendations.
*Note: Baltimore City did not participate in the Jenssen settlement or the settlements with Walgreens, Allergan, and Teva. As such, governmental organizations in Baltimore City are not eligible to receive state-administered funds through these settlements. However, non-government organizations that operate in Baltimore City will be eligible to receive State Discretionary Abatement funds and funds from the State Allocation. Baltimore City joined the State of Maryland’s settlement agreement with Walmart and is eligible to receive Walmart funds pursuant to the structure outlined in the State-Subdivision Agreement.
Summary (as of the 2024 fiscal year)
Note: As of the 2024 fiscal year, a cumulative total of $42,812,147.12 has been distributed directly to local qualifying subdivisions in Maryland by the settlement administrator, Brown Greer PLC. Direct payments to local qualifying subdivisions are not deposited into the Opioid Restitution Fund.