Paxton announces Texas has joined $2.37 billion settlement deal with opioid maker Allergan

Austin, Texas — Attorney General Paxton announced that Texas is joining a $2.37 billion settlement with opioid maker Allergan for its role in the nationwide opioid epidemic. The agreement in principle was previously announced in July 2022. More than $135 million is earmarked for Texas and its local governments under the agreement. Allergan will pay participating states and local governments for seven years.

The company previously produced generic opioids, as well as opioids under the Norco and Kadian brands. Allergan sold its generic portfolio, including opioids, to Teva in 2016. The states entered into agreements with Allergan and Teva Pharmaceuticals. Texas settled separately with Teva in February 2022 for $150 million in cash and $75 million worth of Narcan, which is an opioid overdose lifesaver used by emergency responders.

The Coalition of States alleged that Allergan fraudulently sold opioids by downplaying the risk of addiction, exaggerating their benefits, and encouraging doctors to treat patients with signs of addiction by prescribing more opioids. They also argued that Allergan had failed to enforce effective controls to prevent the diversion of opioids.

“I am happy to announce another settlement to help hold accountable those who created and exacerbated this crisis,” Attorney General Paxton said. “This agreement will not only help bring justice to those affected by Allergan’s reckless actions, but will also provide the means to stop the irresponsible distribution of opioids and help people struggling with addiction.”

Under the agreement, Allergan must transfer clinical data through a third-party archive, disclose documents through a public repository, and stop selling opioids. Allergan also cannot fund or provide grants to third parties to promote opioids or lobby for opioid-related issues.

This agreement is one of many opioid settlement agreements negotiated by Attorney General Paxton in Texas. Attorney General Paxton has received more than $2.5 billion for Texas from those who have exacerbated the opioid crisis, including Allergan, Wal-Mart, CVS, Mallinckrodt, Teva, Endo, Johnson & Johnson, McKinsey, and others.