Another Round of Settlements Could Amount to $235 Million for Communities Affected by the Opioid Crisis

January 9, 2023

Cities will receive an invitation to join the settlements around Jan. 23, with action required by March 2023.

In 2022, a sufficient number of Minnesota cities joined the state’s opioid settlements to provide Minnesotans an anticipated $300+ million in funding for the opioid crisis. The Minnesota Attorney General’s Office has just announced another round of opioid settlements for opioid epidemic treatment and prevention. If enough Minnesota cities join these settlements, they could amount to another $235 million over 15 years for Minnesota and bring much needed relief to communities suffering the devastating effects of the opioid crisis.

This new round of settlements is with major opioid manufacturers Teva Pharmaceuticals and Allergan, and three of the nation’s largest retail pharmacy chains — Walmart, CVS, and Walgreens. Although funding allocations are still being finalized, it is anticipated that again, 75% would go directly to Minnesota local governments and 25% would go to the state.

An overview of the settlement funds

The total payments will be determined by the overall degree of participation by both litigating and non-litigating state and local governments. Under the Minnesota Opioids State-Subdivision Memorandum of Agreement (MOA), all of the settlement funds must be used to remediate the opioid crisis, including treatment, prevention, and recovery services.

  • Teva will pay up to $4.25 billion over 13 years.
  • Allergan will pay up to $2.37 billion over 7 years.
  • Walmart will pay up to $3.1 billion over 6 years, with a possibility for states to earn the entire amount in the first year.
  • CVS will pay up to $5 billion over 10 years.
  • Walgreens will pay up to $5.7 billion over 15 years.

Action required by March 2023

To maximize the dollars that Minnesota receives, cities and counties again need to join the settlements. It is anticipated that a notice of the settlements and the invitation to join will go out to cities on or around Jan. 23. The settlements must be joined within the first quarter of 2023.

As with prior settlements, to join this next round, cities with populations of at least 10,000 must sign documents via Docusign. Cities with a population of at least 30,000 must also execute an amendment to last year’s MOA.

The Minnesota Attorney General’s Office is crafting a short amendment to extend the MOA’s terms to cover these new and any future settlements. It’s intended that once this amendment is signed, if a city chooses to join a future settlement, it need only sign documents via Docusign to do so.

What’s next?

The League will reach out to cities over population 10,000 over the next weeks. Once those cities receive the notice, which should include the amendment and other information, your city is highly encouraged to take action as soon as possible rather than waiting until March.

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