Settlement Amount: Johnson & Johnson $150 Million, Distributors $440 Million
Over 500,000 Deaths from Opioid Abuse in the US Over 20 Years
[Asia Economy International Desk Reporter] Native American tribes in the United States have agreed to receive a large settlement from major pharmaceutical companies over the opioid addiction crisis.
On the 1st (local time), according to the New York Times (NYT) and others, Native American tribes announced through documents submitted to the Cleveland Federal District Court that they have tentatively agreed to a $590 million (approximately 713.3 billion KRW) settlement with Johnson & Johnson and others regarding opioid damages.
The settlement also involved the three major U.S. pharmaceutical distributors, including AmerisourceBergen. Under the agreement, Johnson & Johnson will pay $150 million, and the distributors will pay $440 million. This does not include the separate $75 million settlement reached last year between the Cherokee tribe and pharmaceutical distributors. Therefore, the total settlement amount agreed upon between Native Americans and companies related to the opioid issue reaches $665 million (804 billion KRW).
Considering that a settlement proposal with another opioid pharmaceutical company, Purdue Pharma, is also undergoing arbitration, the compensation amount from the pharmaceutical industry to Native Americans is expected to increase further.
More than 400 Native American tribes and organizations, representing 80% of the U.S. Native American population, participated in this lawsuit against Johnson & Johnson and others.
All Native American tribes recognized by the U.S. federal government can participate in the distribution of the settlement funds if they wish, even if they did not join the initial lawsuit.
The pharmaceutical industry agreed to pay a large settlement to Native Americans because they suffered the most from opioid addiction. According to a study cited in the settlement document, as of 2015, Native Americans had the highest per capita rate of opioid abuse among all population groups in the United States.
Johnson & Johnson and the three major distributors are also reported to be close to a settlement worth $28 billion (31.4 trillion KRW) with state and local governments across the U.S.
Regarding opioid abuse, which has been identified as the cause of death for more than 500,000 people in the U.S. over the past 20 years, pharmaceutical and distribution companies have agreed to pay a total of $40 billion (approximately 48.4 trillion KRW) in settlements or fines so far.
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