California Attorney General Rob Bonta announced a multistate agreement in principle on monetary terms, requiring opioid manufacturer Hikma Pharmaceuticals to pay up to $150 million to address its role in the opioid epidemic. Hikma produces a range of generic opioid products and sells hundreds of millions of opioid doses every year. The Attorneys General allege that from 2006 to 2021, Hikma failed to monitor and report suspicious opioid orders from potentially illegal distributors, even while its personnel knew their systems to monitor suspicious orders were inadequate and prone to failure. The announcement will provide $115 million in cash and $35 million in opioid addiction treatment medication to resolve claims brought by states and local communities against Hikma. States that do not accept the medication will receive cash in lieu of product.
“The opioid epidemic has shattered communities across this country, and Hikma Pharmaceuticals bears responsibility for the grief and loss caused by this crisis,” said Attorney General Bonta. “Although no amount of money could ever undo the pain that has been deeply felt by countless families impacted by this epidemic, today’s announcement is an important step that will help bring recovery to California. At the California Department of Justice, we will continue to hold accountable those that fueled this public health crisis, build on our efforts to heal our communities, and respond to this epidemic from all angles.”
The negotiations in this agreement have been led by California, New York, Delaware, Tennessee, Utah, and Virginia in coordination with an executive committee consisting of the attorneys general of Colorado, Idaho, Illinois, Massachusetts, North Carolina, Ohio, and Oregon. In addition to the financial terms, a final settlement remains contingent on agreement on critical business practice changes.
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