As state and local governments consider how to spend proceeds from settlements with opioid makers, a coalition of medical societies and advocacy groups is urging public officials to create dedicated funds to help people with substance use disorders, rather than fix holes in their budgets.
The admonition comes as lawsuits proceed in different courts around the U.S. involving numerous state, county and city governments, and tribal nations, which have filed some 2,600 lawsuits against drug companies, wholesalers and retailers. The eventual value of the proceeds from all this litigation will amount to tens of billions of dollars in cash and donated products.
However a deal is decided, such a large sum would be a notable payday for local governments that have seen their budgets stretched thin by the Covid-19 pandemic. For this reason, members of the coalition say they’re concerned that government officials may repeat the mistakes made following the 1998 settlement of tobacco litigation that spawned a $246 billion payout over 25 years.
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