Opioid Settlement Story Archives - West Virginia Public Broadcasting

Kanawha County Calls For Transparency In Opioid Foundation

Dr. Matthew Christiansen responded to a letter from the Kanawha County Commission urging transparency in opioid settlement spending.

Through settlements from various lawsuits with opioid manufacturers and distributors, West Virginia stands to gain about $1 billion over the next 10 to 15 years to be spent for recovery and prevention programs.

To ensure the money is used correctly, the West Virginia Legislature created the West Virginia First Foundation (WVFF) to distribute those settlement funds.

On Tuesday, the Kanawha County Commission sent a letter to Dr. Mathew Christiansen, the vice chair of the WVFF board.

2024-04-16 Letter to Dr Christiansen Re WV First Foundation_ (002)Download

The letter reminded Christiansen, and the board, of compliance with the Open Meetings Act, which was voted into the foundation bylaws in 2023.

“The counties and municipalities have heard nothing as to the actions of the West Virginia First Foundation,” the letter reads. “We understand that there have been meetings, but that information has been garnered from the media. We should hear from our duly elected representative first, rather than hearing it second hand after the fact and from the media.”

Christiansen said he appreciates the continued dialogue about transparency and openness.

“Certainly appreciate the county commission reaching out for more regular venues or forms of communication and acknowledge that’s really important for this process, going forward,” Christiansen said. “We are a new foundation, and we’re getting our feet underneath us. And as we haven’t had an executive director, we haven’t had full time staff. And so that’s certainly an area that we will be prioritizing and planning around to make sure that we can communicate more regularly with stakeholders and get the message out to make sure that we address their concerns.”

Other than paying attorney’s fees, the WVFF has not spent any settlement money yet according to Christiansen. Those expenditures can be found at wvfirst.org.

The new Executive Director, Jonathan Board is set to start in the beginning of May.

“I acknowledge the importance of communication and the board is committed to transparency and accountability with regards to these dollars,” Christiansen said. “Everything that we do is going to be public.”

W.Va. First Foundation Picks Director

West Virginia Attorney General Patrick Morrisey named Johnathan Board as the executive director of the West Virginia First Foundation (WVFF).

The state foundation that will distribute nearly $1 billion in opioid settlement money finally has a director.

West Virginia Attorney General Patrick Morrisey named Johnathan Board as the executive director of the West Virginia First Foundation (WVFF).

“As neighbors, we recognize when there’s a problem in one place of the state, it’s a problem in another place,” he said. “And West Virginians are very good neighbors. And so we’re privileged to look out for each other.”

Board’s background includes external and governmental affairs, program management and substance use disorder (SUD) policy, financial oversight and fundraising.

He has served in many capacities as executive director, CEO, director and chairman of the board of businesses and nonprofits, most recently serving as vice president of external affairs for Vandalia Health.

Board graduated with a law degree from West Virginia University (WVU) in 2009 and holds a Bachelor of Science degree from Fairmont State University, 2004.

The WVFF board consists of 11 members — six elected by each region and five appointed by the governor. Board will run the day to day operations of the foundation.

“This is a major step toward healing the battered communities in this state caused by the opioid epidemic,” Morrisey said. “I am confident that with Jonathan’s expertise and dedication to this cause, our mission to heal the wounds of the past is on solid ground.”

To ensure the money is used correctly, the West Virginia Legislature created the West Virginia First Foundation to distribute those settlement funds.

The foundation will handle 72.5 percent of the state’s settlement funds, while 24.5 percent will go to local governments. The remaining 3 percent will be held by the state in escrow to cover any outstanding attorney’s fees.

Board was previously elected to the WVFF to represent Region 4. That region includes Barbour, Braxton, Doddridge, Gilmer, Harrison, Lewis, Marion, Monongalia, Preston, Randolph, Taylor, Tucker and Upshur counties. That region will now have to pick a new representative.

He was planning to run for the state Senate as well, but his campaign website consists of a letter announcing that he is suspending his campaign.

West Virginia Starts Distributing Funds From The Settlement Of Opioid Lawsuits

West Virginia is issuing the first checks from a fund established by the settlement of opioid lawsuits in the state, which has by far the nation’s highest drug overdose death rate.

The Kanawha County Commission said Thursday it received a $2.9 million check and plans to discuss how it will be spent at its next meeting on Jan. 11. Last week the Mercer County Commission received $1.9 million.

The distribution is part of a memorandum of understanding that was previously adopted by state Attorney General Patrick Morrisey and counsel for West Virginia cities and counties. According to the agreement, the board in charge of around $1 billion in funds will distribute just under three-fourths of the settlement money, and a fourth will go directly to local communities and 3% will remain in trust.

Morrisey told the Kanawha County Commission that his office and the state auditor’s office have formed a partnership to ensure that the settlement funds are used properly. All the money must be used to abate the opioid crisis through efforts such as addiction treatment, recovery and prevention programs, or supporting law enforcement in anti-drug measures.

The state is receiving money from each of its settlement agreements on a staggered schedule, with annual payments coming until at least 2036. The West Virginia First Foundation alone is expected to receive around $367 million over the next five years.

Over the past four years, drug manufacturers, distribution companies, pharmacies and other companies have reached settlements totaling more than $50 billion with governments. While the biggest amounts are national in scope, West Virginia has been aggressive in bringing its own lawsuits and reaching more than a dozen settlements.

A $68 million settlement was announced by the state in May with Kroger, the last remaining defendant in a lawsuit involving Walgreens, Walmart, CVS and Rite Aid. Walgreens settled for $83 million; Walmart for more than $65 million; CVS for $82.5 million; and Rite Aid for up to $30 million.

As part of the state’s 2022 settlement with Teva, the University of Charleston School of Pharmacy starting receiving shipments of the overdose-reversal drug naloxone in September.

Morrisey Partners With State Auditor To Ensure Proper Local Spending Of Opioid Funds

West Virginia Attorney General Patrick Morrisey announced a partnership with the state Auditor’s Office to supplement efforts to ensure opioid settlement money will be used for its intended purposes as outlined in the West Virginia First Foundation Memorandum of Understanding.

To make sure opioid settlement money is being used for its intended purpose, local governments will have additional resources from the West Virginia State Auditor’s office.

The MOU created a plan of action to address the opioid crisis and details the allocation method for any settlement funds or judgments received as a result of the various lawsuits against opioid manufacturers, distributors and other parties in the pharmaceutical supply chain.

The West Virginia First Foundation will handle 72.5 percent of the state’s settlement funds, while 24.5 percent will go to local governments. The remaining three percent will be held by the state in escrow to cover any outstanding attorney’s fees.

Morrisey and Auditor J.B. McCuskey are sending letters to cities and counties to provide information and guidance as they begin to receive and plan to spend their share of the opioid settlement money.

“This is another layer in the checks and balances to make sure the money from settlements are used in the best possible way, to attack the opioid scourge head-on,” Morrisey said. “I am pleased to partner with the State Auditor’s Office to bring its proven track record of transparency, accountability, and service to local governments to amplify the collaborative effort between the Attorney General’s Office and local governments around the state.”

Appalachia Health News is a project of West Virginia Public Broadcasting with support from Charleston Area Medical Center and Marshall Health.

Opioid Settlement Funds Foundation Discusses Next Steps

During the second meeting of the West Virginia First Foundation Board, members approved motions to continue the establishment of the organization.

The organization responsible for disseminating 72.5 percent of the state’s opioid settlement funds met Monday to discuss the publication of a website for the foundation, allowing it to publish requests for proposals (RFP) for banking and accounting services as well as an investment advisor.

The West Virginia First Foundation board moved to allow 45 days for responses to RFPs and approved a motion to partner the executive committee with board member and Parkersburg Mayor Tom Joyce, to assist the committee in approving a final proposal.

“How often does a new private foundation stand up with hundreds of millions of dollars in the state of West Virginia?” Joyce asked. “So I think we’ll get plenty of adequate responses.”

While the board is responsible for 72.5 percent of the opioid settlement funds, 24.5 percent will go directly to local governments, and the remaining three percent will be held by the state in escrow to cover any outstanding attorney’s fees.

Under the Memorandum of Understanding (MOU) that established the West Virginia First Foundation board, counties and municipalities were provided “guardrails” on how to spend their funds.

One topic of conversation during Monday’s meeting was to provide technical support and education to local governments. Jefferson County Prosecuting Attorney, and Board Chair, Matt Harvey said the foundation cannot tell localities how to spend their funds.

“It’s more so than making sure that they spend it correctly, it’s about maximizing their dollars. They have a smaller pool than the foundation,” Harvey said. “So if we can save a smaller municipality money without having to retain experts or get legal counsel on what they can and cannot do, and it’s there for the benefit of every municipality and county, cost savings to them, they take those local dollars, and they can invest more locally. That’s the overall thought on that.”

The board moved to appoint volunteers to an exploratory committee for the purpose of supporting local governments.

The board also moved to have the executive committee negotiate the hire of a potential executive director.

The treasurer of the board Jeff Sandy reported the money placed in Huntington Bank accounts is accruing interest and now totals nearly $218 million.

“As of close of business yesterday, we have earned $140,751.40 from the monies that had been placed in accounts at Huntington Bank in interest,” Sandy said. “So the total funds available as of close of business [Friday, Nov. 24, 2023] is $217,640,751.40. And we will be receiving our first bills, hopefully on Dec. 1 from the CPA firm and the law firm.”

The board then went into executive session to discuss foundation policies surrounding meeting and transparency policy.

“The proceeds were entrusted to us by the counties and municipalities, and that took a great deal of faith on their part,” Harvey said. “We want to make sure that we’re good stewards, and so we’re doing our best, and we want to put together a really good meeting and transparency policy that gives them comfort that we are being good stewards with their money and that we’re here to help.”

According to John Bsharah, an attorney representing the board, there were no actionable items from the executive session.

Appalachia Health News is a project of West Virginia Public Broadcasting with support from Charleston Area Medical Center and Marshall Health.

Foundation To Distribute Opioid Funds Holds First Meeting

The first meeting of the West Virginia First Foundation took place Monday morning in Charleston.

To ensure the money is used correctly, the West Virginia Legislature created the West Virginia First Foundation to distribute those settlement funds.

The organization held its first meeting on Monday and Attorney General Patrick Morrisey reminded the board how the money can be spent.

“Anything that is related to the drug epidemic would be permissible, whether it is education, prevention, treatment, law enforcement or other matters,” Morrisey said.

The board elected its chair, Matt Harvey, Jefferson County Prosecuting Attorney, and vice chair, Dr. Matthew Christiansen, who also serves as the state health officer and commissioner of the Department of Health and Human Resources Bureau of Public Health.

The board also elected its treasurer as Jeff Sandy, former secretary of the West Virginia Department of Homeland Security and its secretary, Dora Stutler, Harrison County Schools superintendent.

The board includes 11 members, six selected by the counties and five appointed by the governor. All six regions elected their representatives via a quorum of elected officials from the towns, cities and counties of each region.

The foundation will handle 72.5 percent of the state’s settlement funds, while 24.5 percent will go to local governments. The state will hold the remaining 3 percent in escrow to cover any outstanding attorney’s fees.

Each region is represented by their elected representative:

Region 1: Steven Corder
Region 2: Tim Czaja
Region 3: Parkersburg Mayor Tom Joyce
Region 4: Jonathan Board
Region 5: Dr. Matthew Christiansen
Region 6: Dr. Tony Kelly

Per the memorandum of understanding that frames the settlement distribution, board members will serve staggered terms of three years.

Representatives from Huntington Bank were present at the meeting because they served as the escrow agent to the foundation, free of charge.

The board voted to open an account with Huntington Bank, then moved into executive session for the remainder of the afternoon.