Teva reaches proposed $4.25 bln settlement of U.S. opioid lawsuits

Teva's proposed settlement would allow state and local governments to opt for additional cash in lieu of an allotment of the overdose medication, at a value of 20% of the drug's list price. Iowa Attorney General Tom Miller, a lead negotiator for the states, called it "another major step in addressing the opioids crisis." "We expect these funds to make a significant difference in preventing fatal overdoses and treating opioid addiction disorder," Miller said. Teva's settlement is contingent on separate settlements by AbbVie's Allergan unit.

Teva Pharmaceutical Industries on Tuesday announced a $4.25 billion proposed nationwide settlement that could resolve thousands of lawsuits over the drugmaker's alleged role in the U.S. opioid epidemic.

The proposal calls for Teva to pay up to $3.05 billion in cash and provide $1.2 billion worth of the opioid overdose reversal drug naloxone. Israel-based Teva also will pay approximately $100 million to Native American tribes and pay attorneys fees incurred by the states, local governments and tribes. Teva's proposed settlement would allow state and local governments to opt for additional cash in lieu of an allotment of the overdose medication, at a value of 20% of the drug's list price.

Iowa Attorney General Tom Miller, a lead negotiator for the states, called it "another major step in addressing the opioids crisis." "We expect these funds to make a significant difference in preventing fatal overdoses and treating opioid addiction disorder," Miller said.

Teva's settlement is contingent on separate settlements by AbbVie's Allergan unit. Teva acquired Allergan's generic drugs business in 2016. For the Teva deal to take effect, Allergan must reach its own nationwide opioid settlement, and the two companies must settle a dispute over the amount Allergan owes Teva for claims filed prior to the 2016 sale.

Allergan did not immediately respond to a request for comment.