STATEHOUSE (March 3, 2022) – Legislation authored by State Rep. Mike Karickhoff (R-Kokomo) will soon be law and pave the way for Hoosier communities like Kokomo and Howard County to rejoin the $26 billion national settlement with drug manufacturer Johnson & Johnson, and three major drug distributers.
Indiana joined a multistate lawsuit against Johnson & Johnson, and drug distributers Cardinal Health, McKesson and AmerisourceBergen over their roles in the opioid epidemic, which forced communities to spend millions to mitigate the crisis. While the lawsuit included all of Indiana's communities, about 11% of eligible cities, counties and towns opted out in order to initiate their own lawsuit.
Karickhoff said opt-out communities that pursued their own lawsuit committed substantial time and resources, and their lawsuits may be delayed. Once signed into law, those 27 counties and 45 municipalities can rejoin the multistate settlement, and be eligible to receive a portion of the state's master settlement estimated to be about $500 million.
"This is a significant amount of money that will go a long way in helping the state and our communities fight drug addiction, and it's important that locals don't miss out," Karickhoff said. "With this legislation, communities that did not join the settlement can re-evaluate and opt back in, and start working to heal the tremendous damage caused by these addictive drugs."
Settlement funds will go toward opioid-related programming, fighting the drug crisis, supporting local law enforcement and drug task forces, and bolstering treatment and preventative care. According to Karickhoff, hold-out communities stand to lose nearly $238 million that could otherwise be invested in local drug addiction and recovery programs, and public safety.
“The passage of HB 1193 is a victory for Indiana’s counties, cities, and towns," said Indiana Attorney General Todd Rokita. "We have worked exhaustively to secure millions of dollars from pharmaceutical-related companies and this legislation ensures these dollars will be spent where they are most needed."
With the defendants expected to start releasing funds to a national administrator on April 2, and money expected to start flowing to state and local governments in the second quarter of 2022, Karickhoff said House Enrolled Act 1193, which received unanimous support, establishes a fair and equitable settlement structure. Communities interested in rejoining the settlement must notify the Indiana Attorney General's Office by July 15.
"The General Assembly and the attorney general recognized that counties experienced increased costs responding to the opioid crisis," said David Bottorff, executive director of the Association of Indiana Counties. "County officials appreciate that this legislation ensures that each county in Indiana will receive direct payments from the opioid settlement. While no amount of money can replace the suffering of individuals or the negative economic consequences created by the opioid crisis, this money will alleviate some of the pain created by the industry."
"The outcome of this law will be positive for cities and towns who will receive funds from the opioid litigation settlement," said Matt Greller, CEO of Accelerate Indiana Municipalities. "We thank Representative Karickhoff for leading this important effort, which will help local officials make direct, positive gains in the battle against the devastating opioid abuse epidemic."
The $26 billion multistate settlement stems from a lawsuit with more than 4,000 claims from state and local governments throughout the country. Now three years in the making, 52 states and territories signed onto the settlement. All four companies that are part of the settlement have denied wrongdoing.
Visit iga.in.gov for more information on HEA 1193, which is on the governor's desk to be signed into law.
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State Rep. Mike Karickhoff (R-Kokomo) represents House District 30,
which includes portions of Grant and Howard counties.
Click here to download a high-resolution photo.
