W.Va. Scores High In Opioid Settlement Money Transparency

Only 13 states in the nation have promised 100 percent transparency in how their settlement money will be distributed.

West Virginia’s distribution of opioid settlement funds is among the most transparent when compared to other states.

According to Opioid Settlement Tracker, an independent study of total distributions from nationwide settlements, West Virginia scored 72.5 percent in promised money being distributed to the public.

Only 13 states in the nation have promised 100 percent transparency in how their settlement money will be distributed.

The West Virginia First Foundation was created by the passage of Senate Bill 674 during the 2023 legislative session.

The Foundation is responsible for ensuring counties and other local governments appropriately spend hundreds of millions of dollars they will receive from settlements with opioid companies. 

It will handle 72.5 percent of the state’s settlement funds, while 24.5 percent will go directly to local governments. The remaining 3 percent will be held in escrow by the state.

For the first seven years, 20 percent of the Foundation’s annual budget must be spent on regions, which in turn must report spending of its localities back to the Foundation.

The Foundation must publish “consolidated” expenditures annually, though it is unclear whether these reports will include amounts not devoted to regional spending.

Lyn O’Connell is the associate director for the Division of Addiction Sciences at Marshall University’s Joan C. Edwards School of Medicine. She also sits on the Governor’s Council on Substance Abuse Prevention and Treatment and is the chair of the public education subcommittee.

O’Connell also works with the city of Huntington in the Mayor’s Office of Drug Control Policy. She said it is important for communities to identify their short term and long term needs and a sustainability plan for that funding.

“Without addressing the big underlying issue, we’re still just painting the thing we’re gonna have to paint again next year,” O’Connell said. “So I think that’ll be key in helping and ensuring communities are aware of what they need, and then can build that infrastructure, because it won’t do us any good, to not build lasting infrastructure that hopefully changes the tide on these problems, rather than just expecting it to magically cure itself one day.”

O’Connell said the grant funds will be tracked and recommended other communities follow in Huntington’s footsteps.

“In Huntington we developed two toolkits, one called the ‘City of Solutions’, which was our response to being called the epicenter of the epidemic,” O’Connell said. “Then the second is the ‘Resiliency Plan’. The City of Solutions is retrospective of what we’ve done, and the Resiliency Plan is what we need moving forward.”

The Resiliency Plan outlines continued steps toward recovery from the effects of the substance use epidemic on Huntington’s community by sustaining existing approaches and establishing the necessary long-term solutions to fully recover and prevent similar future crises.

Erin Winstanley, a research scientist and associate professor at West Virginia University’s Department of Psychiatry, said she is concerned about the settlement money being distributed without clinical and scientific methods taken into consideration.

“What we know historically has happened is people without adequate knowledge of empirically based prevention and treatment interventions make decisions about the allocation of funds without understanding the scientific merit of what they’re investing in,” Winstanley said. “I think that leads to potentially poor and ongoing decisions. We really need to question ourselves. West Virginia has had the highest rate of overdose deaths for two decades, for 20 years and we could really potentially squander the opportunity to not just see a decline, but see demonstrable improvements in health and health and access to resources in West Virginia.”

Winstanley said it is important to remember many areas in West Virginia have been designated as health care shortage areas, calling it an access to care crisis.

“I do believe that evidence supports that provision of mental health care, particularly in adolescents and young children, is the primary prevention of drug abuse,” Winstanley said. “If we increase access to behavioral health care, mental health and substance use disorders, we will be able to move the needle on this and make demonstrable improvements. And so we really need to spend that money wisely.”

Discussing Being Appalachian And Our Song Of The Week This West Virginia Morning

On this West Virginia Morning, we travel two years back in time to 2021, when Inside Appalachia asked the question, “What is Appalachia?” Recently, the show received email responses from students in a writing class taught by Debra Nickles at Ohio University Chillicothe. Inside Appalachia host Mason Adams spoke with Nickles and her class about the assignment, which sparked a conversation about regional identity.

On this West Virginia Morning, we travel two years back in time to 2021, when Inside Appalachia asked the question, “What is Appalachia?” Recently, the show received email responses from students in a writing class taught by Debra Nickles at Ohio University Chillicothe. Inside Appalachia host Mason Adams spoke with Nickles and her class about the assignment, which sparked a conversation about regional identity.

Also, Kroger has settled with West Virginia for $68 million in the latest of the state’s opioid lawsuits against major pharmaceutical chains, campaign finances are beginning to flow as candidates for 2024 state office announce their intentions, state officials are raising awareness around motorcycle safety and U.S. Sen. Joe Manchin says he thinks his attempts to change energy permitting will happen this year.

Our Song of the Week comes from Catherine Russell who made her sixth Mountain Stage appearance recently at the Keith-Albee Theater in Huntington. Russell has performed with David Bowie as part of his last touring band, and she’s been singing with Steely Dan since the mid-1990s.

We hear Russell’s performance of “Sticks and Stones,” which comes from her most recent album Send for Me, released in 2022.

West Virginia Morning is a production of West Virginia Public Broadcasting which is solely responsible for its content. 

Support for our news bureaus comes from Concord University and Shepherd University.

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

West Virginia Morning is produced with help from Bill Lynch, Caroline MacGregor, Curtis Tate, Chris Schulz, Emily Rice, Eric Douglas, Liz McCormick, Randy Yohe and Shepherd Snyder. 

Eric Douglas is our news director. Caroline MacGregor is our assistant news director and producer.

Teresa Wills and Chuck Anziulewicz are our hosts.

Listen to West Virginia Morning weekdays at 7:43 a.m. on WVPB Radio or subscribe to the podcast and never miss an episode. #WVMorning

Kroger Settles Opioid Lawsuit For $68 Million

Attorney General Patrick Morrisey announced Thursday his office reached the settlement with Kroger for $68 million.

Kroger has settled with West Virginia for $68 million in the latest, and possibly the last, of the state’s opioid lawsuits against major pharmaceutical chains.

Attorney General Patrick Morrisey announced Thursday his office reached the settlement. A trial in the case was set to begin on June 5, 2023.

The pharmacy chain was the last remaining defendant in a lawsuit involving Walgreens, Walmart, CVS and Rite Aid.

“Well, while there will likely be some litigation in the future, I can say that the current cases for West Virginia right now are complete,” Morrisey said. “As of just yesterday, I reached an agreement along with the we recommended to the counties and cities that Kroger is going to be settling with the state of West Virginia for $68 million.”

Morrisey said this brings the total settlement money to more than $1 billion.

Money from all opioid settlements will be distributed under the terms of the West Virginia First Memorandum of Understanding which allows for the creation of the West Virginia First Foundation.

The foundation will distribute the settlement funds according to the decisions of yet to be elected county representatives and other board members.

“And with that massive amount of supply that’s out there, West Virginia needs to do more today to stop the senseless death,” Morrisey said. “That’s part of why I’m so hopeful about the West Virginia First Foundation and all the work that we’ve been doing.”

W.Va. First Foundation Plans Next Steps

West Virginia has received $340 million of its current total settlement amount of $867 million from lawsuits against opioid makers and distributors. 

West Virginia has received $340 million of its current total settlement amount of $867 million from lawsuits against opioid makers and distributors. 

The legislature created the West Virginia First Foundation to distribute those settlement funds in the 2023 regular session. Senate Bill 674 legally recognizes the creation of the foundation which was signed into law on March 11.

The 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.

Steven Travis, general counsel, Office of the West Virginia Attorney General testified before the Joint Standing Committee on Health during the first interim session of the year.

“With the passage of Senate Bill 674 and it being signed into law, the next steps for our office is continuing to work in conjunction with the representatives of the local governments to draft and finalize the articles of incorporation, which is the legal document that will create the foundation, Travis said. “I am happy to report that those drafts are in, we believe, near-final form.”

“That money is currently being held in a series of qualified settlement fund accounts, which are fully protected guaranteed accounts such that, at an appropriate time that money can be distributed to the local governments as well as the foundation,” Travis said.

Once the articles of incorporation are finalized, an executive director and board members will be chosen.

The foundation will include eleven board members. The governor will appoint five, and six will be selected by local governments across designated regions. Each board member will serve a three year term.

Del. Mike Pushkin, D-Kanawha, asked Travis how regional directors will be chosen and if the population of each region will be taken into account.

“As the memorandum of understanding stands, the municipalities or counties would select a representative to attend a meeting where nominees would be voted on,” Travis said. “It will be weighted by virtue of the distribution percentages under the MOU such that the percentages within a region will be adjusted so they equal 100. So that if, let’s say, for instance, a county were to receive 25 percent of the total dollars within that region, then their vote would constitute 25 percent.”

The state has a pending claim against Kroger which is set to go to trial on June 5th.

New Foundation Will Distribute Opioid Trial Settlement Funds

The newly formed West Virginia First Foundation will distribute settlement funds from lawsuits against opioid makers and distributors. 

The newly formed West Virginia First Foundation will distribute settlement funds from lawsuits against opioid makers and distributors. 

It will handle 72.5 percent of the state’s settlement funds, while 24.5 percent would go to local governments. The remaining 3 percent will be held by the state in escrow.

Senate Bill 674 legally recognizes the creation of the foundation, which was announced last month by Attorney General Patrick Morrisey. Gov. Jim Justice signed the bill Wednesday.

“We can expand treatment, we can provide evidence-based substance use prevention through this foundation,” Morrisey said during a live stream of the bill’s signing. “We’ll actually help ensure that the laws in our state are better enforced.”

The foundation board will include eleven board members. The governor will appoint five, and six will be selected by local governments across designated regions. Each board member would serve a three year term.

All 55 counties and 221 of West Virginia’s 229 cities have signed the foundation’s Memorandum of Understanding, which also establishes the six regions to be represented in the foundation’s board. An executive director will also be named to run the foundation’s daily operations.

In January, Morrisey announced the state had settled for $83 million with the pharmacy store chain Walgreens. Walmart and CVS Pharmacy settled with West Virginia in September for a combined total of $147 million, and a similar settlement for $400 million was reached in August with the nation’s “big three” opioid distributors: AmerisourceBergen, Cardinal Health and McKesson.

“We know that the opioid epidemic has been one of the great challenges of our time, we know that there’s been a lot of senseless death,” Morrisey said. “The bill being signed today marks a tremendous point in time in our effort to fight back against this terrible crisis.”

West Virginia is also set to take grocery store chain Kroger to trial in June.

West Virginia Receives $83 million Opioid Settlement From Walgreens

In a press conference Wednesday morning, West Virginia Attorney General Patrick Morrisey announced his office has reached a settlement with the national pharmaceutical chain Walgreens for $83 million.

In a press conference Wednesday morning, West Virginia Attorney General Patrick Morrisey announced his office has reached a settlement with the national pharmaceutical chain Walgreens for $83 million.

“Today, we’re announcing that the state of West Virginia is settling for $83 million for its claims against Walgreens. We have signed the agreement and we have sent that out to the political subdivisions for their review and approval,” Morrisey said. “As of right now, every single one of the settlements that we brought in has been ratified, and we’ve made the participation numbers that are required under the agreement. So we have made incredible progress.”

The settlement resolves a lawsuit that alleged many pharmacy chains failed to maintain effective controls as a distributor and dispenser that contributed to oversupply of opioids in the state.

Morrisey also announced a June 2023 trial scheduled against The Kroger Company. That’s the last remaining major pharmacy the state of West Virginia is seeking legal action against.

“And let me say that the allegations we have made against Kroger are quite serious. Kroger, the only entity now to not settle with the state of West Virginia, we’ve alleged that they failed to report any suspicious orders to the DEA and the West Virginia Board of Pharmacy,” Morrisey said. “ We are alleging that Kroger effectively had no suspicious order monitoring policy for a significant amount of the time period covered. And so we’re going to pursue this. I take my job very seriously in enforcing the laws of the state. I’m asking Kroger to come forward in a very serious manner and to address these issues.”

Morrisey defended his office’s decision to reject national settlements in an effort to secure more funds for West Virginians.

“We’ve doubled up the amount that we would have obtained through the National settlements. I’m not telling you that there wasn’t some risk involved in that,” Morrisey said. “And we went to trial and we pushed this. But I think that we believed in the merits of our case, we were willing to go to trial over it.”

Wednesday’s announcement brings the total West Virginia dollars brought in from opioid litigation to more than $950 million, according to the Attorney General’s office.

Exit mobile version