A meeting was held Tuesday to discuss opioid settlement funds in Campbell County.
The Campbell County Mayors and Fiscal Court meeting informed governments in the county of the approximation of money they could expect over a period of time and what the money could be allocated toward. No action was taken at the meeting.
The county first became involved in the class action lawsuit in 2017, said Campbell County Attorney Steve Franzen, when a few major law firms tried to get local governments to sue pharmaceutical companies related to the opioid crisis. Part of that effort included coming to the Campbell County Fiscal Court to get them involved.
“We get the benefit of people pooling their resources to take on these large conglomerates,” Franzen said. “But we also give up almost all control over how the litigation proceeds. Whether or not to settle it — if we opt out of the settlement — we would have to do all this stuff ourselves, which very few local governments would be willing to do.”
Campbell County Assistant Attorney Michelle Eviston said nine to 10 settlements had been reached; she said the county should receive a portion from all of them, though exact numbers and time frames are still up in the air.
The number of local governments that end up participating will determine how much money is distributed from the suits, Franzen said. The funds will be allocated over a named number of years, depending on the company.
Eviston said the county had received some money from lawsuits involving Cardinal Health, McKesson, AmerisourceBergen, and Johnson and Johnson. She said it is estimated that the county could receive up to $6.5 million. That money would come over 18 years from the first three distributors and nine years from Johnson and Johnson.
The county’s money from these suits must go to specific projects to aid the opioid crisis. Franzen said that could include things like more treatment facilities or educational programs. The money cannot be used for things like road projects or to supplement the county budget.
“The county intends to spend whatever money we do get for the benefit of the entire county,” Franzen said. “It’s not just going to be for the unincorporated areas or the urban areas. They’re going to try to develop something to benefit everyone.”
In accordance with the terms of House Bill 427, 50% of awarded money will be distributed to local governments and 50% to the state’s opioid abatement fund, which the Kentucky Opioid Abatement Advisory Commission will administer. The state’s 50% will already be removed from the portion of funds local municipalities will receive.
Kentucky receives 2.1% of the national settlement, and Campbell County gets around 3% of the local government share of that 2.1%, Eviston said. McKesson, Cardinal Health, and AmerisourceBergen will owe up to $21 billion nationally over 18 years. Johnson and Johnson will owe up to $5 billion nationally over nine years. Teva will owe up to $3.34 billion nationally over 13 years (and either supply generic Narcan or cash in place of product, as each state may select.) Allergan will owe up to $2.02 billion nationwide over seven years.
Eviston said there is one exception for cities to receive funds.
“The general assembly added that if any city were going to get less than $30,000 total from any settlement, judgment, or bankruptcy, then that money would not be paid to the city and instead that is going to roll up to the county,” she said.
Dayton Mayor Ben Baker asked at the meeting if cities could collaborate and use their funding for projects that would serve both cities. He gave the example of Dayton sharing their fire department with neighboring Bellevue.
Franzen said the shared use of funds would be encouraged; but again, the money would have to be allocated to opioid-related items.
The amount each county and city is awarded is determined based on population, number of opioid-related deaths, opioid distribution, and the impact of other issues related to opioids.
“If you had any CVS or Walgreens (or other company related to the settlement) in your community that raised your numbers,” Franzen said. “Because there was a lot more fraud or theft with those types of establishments.”
Though participating in the lawsuits doesn’t cost the county money, it does cost them in public resources with the amount of time spent. Franzen said they receive one to 10 emails and one to two letters daily to review regarding the settlements.
As for the opioid epidemic, Franzen said it had a considerable impact on Campbell County.
“We see it every single day and have now for the past 10 years or more,” Franzen said. “In our district court, in our jails, in our hospitals. It’s been a huge drain on public resources—the police, our healthcare workers.”
If you or someone you know is struggling with addiction, contact the Northern Kentucky addiction helpline at (859) 415-9280.
