Allergan, Teva to pay $54M in San Francisco opioid lawsuit

Jul 12, 2022, 9:13 AM | Updated: Jul 13, 2022, 3:07 pm
FILE - The Allergan logo appears above a trading post on the floor of the New York Stock Exchange o...

FILE - The Allergan logo appears above a trading post on the floor of the New York Stock Exchange on Nov. 23, 2015. Opioid makers Allergan and Teva have agreed to pay $54 million in cash and overdose reversal drugs to settle a federal lawsuit brought by San Francisco, in an agreement announced Tuesday, July 12, 2022. The city alleges the drug industry fueled an overdose and addiction surge in San Francisco that created a public nuisance. (AP Photo/Richard Drew, File)

(AP Photo/Richard Drew, File)

SAN FRANCISCO (AP) — Opioid makers Allergan and Teva have agreed to pay $54 million in cash and overdose reversal drugs to settle a federal lawsuit brought by San Francisco alleging the drug industry fueled an overdose and addiction surge that created a public nuisance.

City Attorney David Chiu made the announcement Tuesday before closing arguments against the sole remaining defendant, Walgreens, started later in the morning. The lawsuit alleges that the pharmacy chain over-dispensed opioids without proper oversight and failed to identify and report suspicious orders as required by law.

Drug overdose deaths have surged in the country, including in San Francisco. Mayor London Breed declared a state of emergency last year in the Tenderloin neighborhood, saying something had to be done about the high concentration of drug dealers and people consuming drugs out in public.

The city attorney’s office says San Francisco saw a nearly 500% increase in opioid-related overdose deaths between 2015 and 2020 and that on a typical day, roughly a quarter of visits at the Zuckerberg San Francisco General Hospital Emergency Department are opioid-related.

The agreement announced Tuesday calls for the two opioid manufacturers to pay San Francisco $34 million in cash and provide $20 million worth of the overdose reversal drug, Narcan.

Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd., said in a statement that the settlement is a step forward “in getting life-saving treatments to people suffering from opioid addiction” but was not an admission of liability or wrongdoing.

Walgreens spokesperson Fraser Engerman declined to comment, while Allergan did not respond to a request for comment.

The San Francisco case is one of only a handful of government claims against companies over the opioid epidemic so far that have gone to trial.

More cases have settled before trials. Earlier this year, the distribution companies AmerisourceBergen, Cardinal Health and McKesson plus drug maker Johnson & Johnson finalized nationwide settlements totaling $26 billion.

And the drug maker Purdue Pharma is in court trying to win approval for a deal that could be worth $10 billion that it crafted after declaring bankruptcy amid the weight of lawsuits facing the OxyContin maker.

In all, proposed and completed settlements over the epidemic in the U.S. have totaled more than $40 billion, according to an Associated Press tally.

Much of the legal action so far has involved companies that make or distribute opioids, but litigation against pharmacies has emerged, too.

So far, there has been a verdict in just one pharmacy case. Last year, an Ohio jury found that CVS, Walgreens and Walmart recklessly distributed opioids in two counties. It’s up to a judge to determine their penalty.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
6 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
14 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
14 days ago
Tom Brundy points to a newly built irrigation canal on one of the fields at his farm Tuesday, Feb. ...
Associated Press

Southwest farmers reluctant to idle farmland to save water

There is a growing sense that fallowing will have to be part of the solution to the increasingly desperate drought in the West.
21 days ago
A young bison calf stands in a pond with its herd at Bull Hollow, Okla., on Sept. 27, 2022. The cal...
Associated Press

US aims to restore bison herds to Native American lands after near extinction

U.S. officials will work to restore more large bison herds to Native American lands under a Friday order from Interior Secretary Deb Haaland.
21 days ago
Children play in a dried riverbed in Flassans-sur-Issole, southern France, Wednesday, March 1, 2023...
Associated Press

Italy, France confront 2nd year of western Europe drought

ROME (AP) — Bracing for Italy’s second consecutive year of drought for the first time in decades, Premier Giorgia Meloni huddled with ministers Wednesday to start mapping out an action plan Wednesday, joining France and other nations in western Europe grappling with scant winter rain and snow. Meloni and her ministers decided to appoint an […]
23 days ago

Sponsored Articles

(Photo by Michael Matthey/picture alliance via Getty Images)...
Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.
(Desert Institute for Spine Care photo)...

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
(Photo via MLB's Arizona Fall League / Twitter)...
Arizona Fall League

Top prospects to watch at this year’s Arizona Fall League

One of the most exciting elements of the MLB offseason is the Arizona Fall League, which began its 30th season Monday.
Allergan, Teva to pay $54M in San Francisco opioid lawsuit