California's Opioid Settlements
Overview
This page provides information for California and the cities, counties, and other eligible subdivisions (“Participating Subdivisions") regarding the California Opioid Settlements.
On July 21, 2021, a $26 billion offer to settle was made by opioid manufacturer Janssen Pharmaceuticals (parent company of Johnson & Johnson) and the “big three" distributors, McKesson, AmerisourceBergen, and Cardinal Health (“the Distributors") to resolve their liabilities in over 3,000 opioid crisis-related lawsuits nationwide. It's estimated that California will receive approximately $2.05 billion from the Janssen and Distributors (J&D) Settlement Agreements over the next 18 years. The majority of this money will be provided to Participating Subdivisions to be used for opioid abatement activities.
California has joined additional lawsuits against manufacturers, distributors, and other entities responsible for aiding the opioid epidemic and anticipates receiving funds from future opioid judgment and settlement agreements.
Webinars
Webinar on Janssen & Distributors Settlement Allowable Expenses - January 26, 2023 PowerPoint
Listening Sessions
Listening Session on Janssen & Distributors Settlement Reporting Requirements - December 7, 2022 PowerPoint
Oversight and Administration of Settlement Funds
Pursuant to Government Code, Title 2, Division 3, Part 2, Chapter 6, Article 2, Section 12534, the Opioid Settlements Fund (OSF) was created in the State Treasury. Funds from J&D settlement agreements and funds received from any other future judgments or settlements allocated to the state for state opioid remediation, shall be deposited into the OSF.
The Department of Health Care Services (DHCS) shall oversee and administer the OSF and activities funded by the OSF, from the 15% allocated to the State of California. In addition, DHCS has oversight over the 70% allocated to the Participating Subdivisions and used for opioid remediation activities, and 15% allocated to the Plaintiff Subdivisions that are Initial Participating Subdivisions. This includes, but is not limited to, designating additional high-impact abatement activities, conducting related stakeholder engagement, monitoring the California participating subdivisions for compliance, and preparing annual reports.
California Participating Subdivisions receiving J&D Settlement allocations from the CA Abatements Account are required to spend these funds on opioid remediation activities. For a list of allowable activities, please refer to the J&D Settlement Allowable Expenditures resource, which includes California’s designated High Impact Abatement Activities and a list of opioid remediation activities from Exhibit E of the National Settlement Agreements. For clarification on common questions regarding expenditure and reporting requirements, please refer to the Janssen and Distributors Settlement Funds Frequently Asked Questions (FAQs) resource.
Funding Allocations under the J&D Settlement Agreements
The funds received from these Settlement Agreements will be distributed as follows: 15% allocated to the State of California and used for future opioid remediation activities, 70% allocated to the Participating Subdivisions and used for opioid remediation activities, and 15% allocated to the Plaintiff Subdivisions that are Initial Participating Subdivisions. Exact percentages provided to Participating Subdivisions will be based on the percentage schedules found in the J&D California State-Subdivision Agreements.
Funds from the J&D Settlement Agreements must be used specifically for opioid remediation activities. Lists of allowable and required opioid remediation activities utilizing these funds can be found in the J&D Settlement Agreements and the J&D California State-Subdivision Agreements.
J&D Settlements Technical Assistance
Per the J&D California State Subdivision Agreements, DHCS is designated to oversee the use and expenditure of J&D Settlement funds by Participating Subdivisions. DHCS offers technical assistance and training related to the J&D Settlements in the following areas:
- Allowable expenditures
- Expense tracking and record keeping
- Expense reporting
Participating Subdivisions that receive funds from the J&D Settlements may request technical assistance from DHCS following the process below.
Requesting Technical Assistance
- Participating Subdivisions must review the Janssen & Distributors Settlement Funds Allowable Expenditures resource and the FAQs: Janssen and Distributors Settlement Fund resource prior to submitting a request.
- Subdivisions interested in receiving technical assistance from DHCS staff should complete the J&D Technical Assistance Form and send their completed form to OSF@dhcs.ca.gov.
- DHCS will confirm receipt of the Technical Assistance Form. If a Participating Subdivision does not receive a confirmation email after three (3) business days, they should follow up with DHCS to ensure the form was received.
- DHCS will review the Technical Assistance Form and respond to the Participating Subdivision's question(s). If DHCS determines that more information is needed, the Participating Subdivision will receive an email containing clarifying questions and/or a request for a Technical Assistance meeting.
- The Participating Subdivision must respond to DHCS' question(s) via email. If a Technical Assistance meeting is scheduled, DHCS and the Participating Subdivision will meet and discuss the Participating Subdivision's inquiry. DHCS and the Participating Subdivision will continue to follow up as needed.
Questions on California's Opioid Settlements
Questions about opioid litigation and participation can be directed to the Office of the Attorney General at
OpioidSettlement-LocalGovernment@doj.ca.gov.
Questions about the OSF and oversight of Participating Subdivisions can be directed to DHCS at
OSF@dhcs.ca.gov.
Additional Links
Information on this website will be updated as more information becomes available on California's Opioid Settlements.
