AbbVie division Allergan in $200M settlement with New York over role in opioid crisis

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• Allergan, now part of AbbVie (ABBV -0.3%), has reached a $200M settlement with New York State Attorney General Letitia James over its alleged role in helping to fuel the prescription opioid epidemic.
• The payment will be made by mid-2022, with $150M going towards opioid abatement.
• The agreement also bars Allergan from selling opioids in New York.
• The company has also been removed from an ongoing trial in Suffolk County in the state with several drugmakers as defendants.
• Pharmaceutical distributors, including AmerisourceBergen (ABC +0.6%), Cardinal Health (CAH +0.2%), and McKesson (MCK +1.3%) reached up to $1.2B settlement with James in July over opioid involvement accusations.

Comments

[WSLegend]

Curious what Allergan ever had to do with opioids?

[namam75]

@WSLegend they were doing 40% of generic opioid between 2006-12

[WSLegend]

@namam75
Never realized that! I always just thought of them as being in Ophthalmology and Aesthetics.

[namam75]

@WSLegend they used to be known as actavis generic at that time

[bbob68]

Could someone please tell me what exactly Allergan to deserve such a penalty? Isn't it the doctors who have to write the scripts? I don't see that much about many of them being held accountable.....maybe I'm missing it.

[namam75]

@bbob68 the whole things is extortion but everyone is caving in..like JnJ/mackensoon/endo etc

[Income4ever aka Cyclenut]

Fold like a cheap tent... who benefit s lawyers, politicians never the actual victims..

[dynx]

@Income4ever aka Cyclenut it’s cheap. Why fight it? Best part is they can’t sell opiates there. Good.

[Charliedon'tsurf]

Shake down.

[Marrk]

Good move. Pay it off. Don't do it again. Move on.

Long ABBV

[DivCam]

What opioid did allegan make?

[Jason Z]

so $200M x 50 states?

[dynx]

@Jason Z some states aren’t insane. But they are all greedy. So it’s a toss up.

[namam75]

@Jason Z will be closer to 3B global settlement as NY is getting 5.5% of the global settlement.

[farmed out]

And who will be the beneficiaries of this $200 M payment? Families of opioid users? Taxpayers in general? The government of NY who will decide what they want to do with this money?

[dynx]

@farmed out my savings I suspect you know the answer to this. A relative of some politician that has set up a “non-profit” focused on opiate abuse will soon be purchasing a new Ferrari and one of those awesome Biden Jr. finger paintings.

[AlieGee]

Another NY high tax state shakedown.