AG McCuskey Announces Change To How Opioid Settlements Are Managed

West Virginia Attorney General JB McCuskey announced Tuesday that moving forward, opioid settlement recoveries obtained by the state will be allocated and utilized by the legislature, and recoveries obtained by local governments will be allocated and utilized by mayors and county commissioners.  

Since 2022, the distribution of opioid settlement funds has been governed by the “West Virginia First Memorandum of Understanding” (MOU). The MOU directed 72.5% of all opioid settlements to the West Virginia First Foundation for distribution to community organizations and another 24.5% to local governments.  The remaining 3% is held by the state in escrow to cover any outstanding attorney’s fees. 

In a press release McCuskey said the change in distribution will reduce the share of these recoveries paid to third parties and for attorneys’ fees. 

The MOU also specified in detail how settlement funds were to be spent, with a focus on recovery from and prevention of opioid addiction. 

McCuskey said the First Foundation, which has already begun spending the more than $700 million it will receive from the earlier settlements, now has the necessary resources to fulfill its important mission and that now is the time to allow the state and local government to do the same. 

“We have made significant progress in the fight against opioid addiction in West Virginia — a testament to the great work of my predecessor, Governor Morissey, his team, and all of the men and women across the state who have committed their lives to solving this crisis and guaranteeing that West Virginia’s best days are ahead. As my team continues to aggressively pursue all who contributed to this crisis, I want to ensure that everyone fighting alongside of us has the money to achieve their objectives,” McCuskey said. “As the former State Auditor and a former legislator, I have worked with both the legislature and our local governments and am confident that they know best what their communities need. I am excited to see the thoughtful and effective ways that my friends in both local governments and the Legislature use this increased funding to better the lives of their constituents.”