Johnson & Johnson to terminate opioids sale and manufacturing
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Johnson & Johnson has reached a $230 million settlement with New York State and announced that it will stop the sale and manufacturing of opioids.
It was one of the big firms accused of fueling the deadly opioid crisis in the USA. The settlement allowed the company to avoid the trial which was scheduled to begin tomorrow.
The company will be paying off the settlement in nine years. The $230 million will be used to prevent opioid use in New York State. It will also contribute to the treatment of victims and educate people about the side effects of using opioids.
The new agreement will allow Johnson & Johnson to resolve the litigation. According to New York attorney general Letitia James, more than half a million people have died since 1999 in the opioid epidemic.
Opioids are mainly prescription pain relievers. Abuse of it can lead to addiction and overdose. In 2019 alone, close to 50,000 people died from opioid-involved overdoses.
Johnson & Johnson, along with other pharmaceutical firms, are accused of encouraging doctors to prescribe opioids to patients suffering from particular types of cancer despite knowing its addictive properties. The dependence has pushed many patients to higher and higher doses. Addicts can also seek out illicit substances like heroin to satiate the need.
The attorney general said that the opioid epidemic wreaked havoc on countless communities across New York State and the rest of the nation. It has left millions of people still addicted to dangerous and deadly opioids. She added that Johnson & Johnson helped fuel this fire.
The pharmaceutical giant has released a separate statement saying that the settlement is not an admission of liability or wrongdoing. It also noted that other nationwide legal proceedings are underway, which includes a trial in California.
Another popular consulting firm, McKinsey had also agreed in February to pay a settlement of $573 to avoid trial. McKinsey is accused of advising oxytocin manufacturer Purdue Pharma to contribute to the opioid crisis.