Washington, Greene agree to participate in $26 billion opioid settlement
Officials in Washington and Greene counties agreed Thursday to participate in a $26 billion multi-state opioid lawsuit settlement, while Fayette County commissioners are expected to schedule a special meeting next week to make a decision on the matter.
The approvals are merely a starting point in the process as the settlement announced in July by Pennsylvania Attorney General Josh Shapiro and several other state attorneys general requires wide support across numerous jurisdictions by Jan. 2.
Pennsylvania is earmarked to receive more than $1 billion in the settlement with opioid manufacturer Johnson & Johnson and three pharmaceutical distributors, with the money filtering down to counties and communities that agree not to litigate.
Washington County could receive up $11.5 million, while Greene County is set to receive up to $1.42 million and Fayette County would receive up to $9 million. However, those allotments, which would be disbursed over 18 years, could decrease depending on the number of counties and states that decide not to participate.
In addition, municipalities that have more than 10,000 residents would also have to agree not to litigate for the counties to get their full allotment. Cecil, North Strabane and Peters townships and the city of Washington fit the criteria in Washington County, while North Union and South Union townships are above the population threshold in Fayette County. It was not clear if any of those municipalities planned to agree to the settlement.
Greene County Commission Chairman Mike Belding said the decision was obvious because of the amount of money it would cost to battle pharmaceutical giants in court over several years. Thursday’s vote by the commissions was unanimous.
“We don’t have the resources to hire that kind of legal counsel,” Belding said. “From everything I’ve learned, I think it’s a pretty fair settlement per county. … I think it’s an adequate settlement for the (taxpayer’s) investment of zero, nor having any legal expenses from the county.”
The Washington County commissioners also unanimously approved a motion Thursday agreeing to participate in the settlement. But county Solicitor Jana Grimm said it’s too soon to tell whether the settlement will go through since the state’s two largest counties – Allegheny and Philadelphia – have indicated they do not plan to participate. That could cut into the amount of money available locally or possibly torpedo the entire settlement all together if enough communities don’t agree to the deal.
“They need enough participation across the state and country, or it may not go through,” Grim said. “There are so many moving pieces.”
While Fayette County Commission Chairman Dave Lohr thinks his board is leaning toward agreeing to participate in the settlement, he won’t know for sure until they schedule a special meeting to vote on the matter, which could happen next week.
“It seems like we’re heading in that direction,” Lohr said while acknowledging they have to file their paperwork with the state by Jan. 2. “That’s where we’re scrambling. We’ll have to call a special meeting. … It seems like all three of the commissioners are on board heading in the same direction.”
The opioid agreement currently under consideration by counties in Pennsylvania and elsewhere is different than a $4.5 billion bankruptcy settlement with Purdue Pharma that was thrown out Thursday night by a federal judge.