Eagle Pass City Council Approves Proposed Opioid Settlement Against Johnson & Johnson
By: Ricardo E. Calderon, Eagle Pass Business Journal, Inc., Copyright 2021
The Eagle Pass, Texas City Council unanimously approved a resolution approving a proposed settlement against Johnson & Johnson in the Jansen Texas state-wide Opioid Settlement Agreement at a special emergency meeting held on Thursday, November 18, 2021, scheduled to receive approximately $68,000 in settlement funds, said City Attorney Heriberto Morales of Langley & Banack.
The City of Eagle Pass and hundreds of other Texas cities and counties joined in suing Johnson & Johnson, Jansen Pharmaceuticals, Inc., and other related-entities of Johnson & Johnson for engaging in fraudulent and reckless marketing and distribution of opioids that resulted in addictions and overdoses in Eagle Pass and statewide.
The special emergency City Council meeting was necessary due to a deadline of November 18, 2021 to either accept or decline the proposed $850,000,000 (million) settlement negotiated by the Office of the Attorney General of Texas for the Texas part of the legal claims filed. The Texas Attorney General Office negotiated this proposed settlement on October 17, 2021.
The State of Texas lawsuit against Johnson & Johnson and its related companies was filed in the 152nd District Court of Harris County, Texas in Houston.
The proposed settlement funds will be divided into two categories, including $150 million to be distributed among cities and counties and $700 million to be distributed to a state created opioid abatement fund.
Morales stated that this proposed settlement is limited to Johnson & Johnson and its related companies and that other legal claims against other opioid manufacturers and pharmaceuticals are not affected. Morales noted the City of Eagle Pass legal claims against other opioid manufacturers will continue and proceed.
Morales also noted that the City of Eagle Pass will be eligible to receive additional funds from this settlement from a special allocation set aside for Region 20, which Eagle Pass belongs to, of $8,329,000 (million).
Morales added that these settlement funds are to be used for programs related to opioids.
Eagle Pass Mayor Rolando Salinas, Jr. stated the City of Eagle Pass Police Department will receive part of these funds in their battle against opioids addiction and distribution within the community.
Morales added that the County of Maverick is expected to receive up to $141,000 in settlement funds from this case subject to approval by the Maverick County Commissioners Court.
Morales, however, raised a point in the settlement funds that shows Eagle Pass receiving a “different amount” than stated by the Texas Attorney General’s Office representatives. The distribution of funds is based on a formula and Eagle Pass is to receive 0.03734%, causing the City of Eagle Pass to bring up this discrepancy before the National Legal Counsel of the plaintiffs in the litigation. Mayor Pro-Tem Yolanda P. Ramon asked Morales to bring this discrepancy to the National Legal Counsel to ensure the City of Eagle Pass receives the funds it is entitled to.
After little discussion on the sole agenda item, Councilman William Davis made the motion to approve the proposed settlement and seconded by Mayor Pro-Tem Yolanda P. Ramon, passing unanimously.
