AbbVie's Allergan to pay out more than $2B to resolve opioid litigation: Bloomberg

In quick succession for opioid settlements, AbbVie’s Allergan unit has agreed to fork over more than $2 billion to resolve the thousands of lawsuits regarding the marketing of its opioid painkiller, according to people familiar with the matter, Bloomberg reports.

More than 3,000 lawsuits from state and local governments would be settled by the deal. The terms of the settlements are still being discussed, according to the Bloomberg sources.

Just yesterday, Teva announced that it will pay up to $4.25 billion in a nationwide settlement to end litigation over its alleged role in the opioid crisis. However, that settlement is dependent on Allergan’s own nationwide settlement and Teva resolving its liability debate with Allergan.

In 2016, Teva paid about $40 billion for Allergan’s generics unit, which included its generic opioids. Allergan has thus claimed that that deal shifted opioid liabilities to Teva.

Today's $2 billion deal is part of consolidated litigation before a federal judge in Cleveland. The Cleveland judge has produced other opioid settlements including a $26 billion deal with Johnson & Johnson along with three of the nation’s largest drug distributors.

For its part, Allergan agreed back in December to pay $200 million to settle a case in New York, and the judge has yet to decide how much Teva will owe. And in May, the company along with Teva agreed to pay $161 million to resolve opioid litigation in West Virginia. Teva paid $83 million, plus $27 million in Narcan, and Allergan was responsible for the remaining $51 million.

Earlier this month, Allergan paid $13 million to settle opioid claims in San Francisco, while Teva shouldered $24.8 million and $20 million in Narcan. The companies tried to delay those proceedings, but a federal judge in February rejected the bid.