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Opioid Litigation Settlement in Sight with Agreement Between State of Texas, Local Governments

June 3, 2020

An agreement that could bring monetary relief to communities battling the opioid epidemic has been made between the Texas Attorney General’s office and a group of Texas cities and counties ravaged by the highly addictive drugs.

The agreement, which was announced by Texas Attorney General Ken Paxton, provides structure to any future settlements with manufacturers, distributers and retailers that played a role in flooding communities with prescription painkillers like Purdue Pharma’s Oxycontin. The agreement ensures that settlement funds will be properly channeled to the local and regional level so that the money can be spent where it’s needed most.

Fears Nachawati partner Matthew McCarley is a part of the firm’s legal team representing numerous cities, counties and local government entities in opioid litigation in Texas and across the country. “These cities and counties have learned from the mistakes of the Big Tobacco settlement in the 1990s, where funds intended for communities disappeared in the state’s coffers,” Matthew said. “It is critically important that a structure is in place before a settlement is approved to make sure that funds reach these communities to provide critical relief on the ground.”

The agreement guarantees that the state and local governments will each receive 15 percent of any settlement, with the remaining 70 percent administered by the Texas Opioid Council to be dispersed to 20 regional healthcare partnerships that operate treatment programs across Texas.

With experience and expertise representing states, regional governments, public hospitals and other public entities, Fears Nachawati is leading the charge against pharmaceutical companies, distributers, retailers and those responsible for the opioid epidemic and the damage it’s done.

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