Shawano and Oconto counties ready to settle opioid lawsuits

Latest round of settlements with two manufacturers and three retailers
By: 
Warren Bluhm and Luke Reimer
NEW Media

The Shawano and Oconto County boards last week approved the latest round of settlements with companies involved with the manufacture and distribution of opioids.

Most Wisconsin counties and several states joined in a lawsuit several years ago in an effort to reclaim some of the costs involved in the treatment of opioid addiction and enforcement of drugs laws.

The latest settlements are with two manufacturers — Teva Pharmaceutical Industries and Allergan Finance — and three retailers — CVS, Walmart and Walgreens — Oconto County Administrator Erik Pritzl told the county board during its March 23 meeting.

The county participated in previous settlements approved in 2021 with the three largest distributors of opiates and manufacturer Janssen Pharmaceuticals Inc., a subsidiary of Johnson and Johnson. Pritzl said Oconto County’s share of those settlements amounted to $754,917.

“Those settlements go for a period of time from 2032 to 2038, we actually have received some of those settlement funds,” he said. “Janssen for example elected to pre-pay, a lot of their settlement, just under 75%; so far we’ve received $158,759 in those settlements.

“These are now the next round of settlements. There will be additional settlements coming.”

Payments from the new settlements will begin in 2023 and go through 2038, Pritzl said.

“The specific amount for our county isn’t known until all the participating entities are counted, and this goes for states as well, so if states or local units of government decide not to participate, that will change the settlement amounts,” he said.

Pritzl said he was told a very rough estimate would be that the county might expect about 80% of what was received in the first settlements, or in the neighborhood of $600,000.

There is a lengthy list about approved ways the counties may spend the settlement dollars, most of them related to treatment and prevention, training and research.

“We do have to report how we use these funds in order to be compliant with the settlement,” Pritzl said. The counties have until April 18 to join the settlements.

Shawano County Board Chair Tom Kautza said that, over a period of time, Shawano County believes it can expect a payment of approximately $500,000-$750,000.

“They have a list of things that you can use it for and almost all of that money is going to have to be oriented towards projects that the Department of Health and Human Services do, like assistance for those who are getting off the opioids — counseling for them,” said Kautza. “Various programs like that.”

Kautza added that Shawano County has had discussions if they wanted to take the money in a lump sum.

“There is companies out there that if you have a structured settlement, they will give you money in a lump sum up front,” said Kautza. “That was started, but we haven’t heard anything more about it.”

In the second round of settlement, Kautza explained that all of the major pharmaceutical companies stepped forward and want a settlement.

“I think that as a part of this settlement, they are hoping then that they won’t be liable against smaller suits here and there all over the place,” said Kautza. “They will be able to say that we settle once and now we are done.”

Nationwide, Kautza said that the second round of settlements totals up to approximately $20 billion.

“I have not found an exact number yet of what Shawano County’s portion would be, but I would imagine it would be a significant amount of money in the end to use towards various programs,” said Kautza. “One example is that we use that money is for mental health counseling with people in the jail.”

Supervisors received a letter from Erin Dickinson of Crueger Dickinson LLC, the law firm representing the plaintiffs in the lawsuit, advising that any county that decides not to participate in the settlements would place itself in a position where it would have to litigate with the five companies on their own.

“We strongly recommend that you join these settlements,” Dickinson wrote. “We firmly believe your county will not receive a better settlement offer than this short of spending additional years, millions of dollars, and significant use of county resources. And, as with any litigation, we cannot guarantee the outcome of such a litigation effort even if the county was to undertake it.”

Both the Shawano County Board and Oconto County Board voted unanimously to approve the settlements.