A New Jersey pharmaceutical company and its affiliates will
pay Schuyler County up to $38,000 to settle claims it contributed to the
ongoing opioid crisis in that county, under a resolution approved by the
Schuyler County Legislature.
Meeting on Monday (August 11), the legislature voted to
accept the settlement and authorized Schuyler County Attorney Steven Getman to
execute the necessary legal documents.
According to the resolution, Sandoz, Inc. and several
related entities (Novartis Pharmaceuticals Corporation, Novartis AG, Sandoz
International GmbH, Novartis Manufacturing LLC, Novartis Institutes for
Biomedical Research, Inc., Novartis Corporation, and Novartis Consumer
Health), agreed to the settlement with
the county in exchange for being released from a pending lawsuit filed by the
county, as well as claims brought by other participating local governments nationwide.
The agreement calls for a one-time payment to be issued in
2026 and the funds are to be used solely for opioid remediation and abatement,
Getman said.
According to Getman, the funds can be used for a variety of
purposes.
“Potential uses may include supporting police and
first responders, treating
opioid addiction, funding social services and similar anti-drug
efforts,” Getman explained.
The motion authorizing Getman to accept the settlement was
made by County Legislator Phil Barnes (R-District VI) and seconded by
Legislator Mark Rondinaro (R-District VII).
The Sandoz agreement is the latest opioid settlement
Schuyler County has been a part of in the past seven years. In 2021, the county legislature authorized
Getman to accept up to $121,000 from Johnson & Johnson and up to
$546,000 from distributors McKesson Corporation, Cardinal Health Inc. and
Amerisource Bergen Drug Corporation to treat, reduce and prevent opioid use
through a court settlement with the opioid maker. A similar agreement, for $41,000, was
obtained from defendant Actavis, Inc. in early 2022. In 2023, Teva Pharmaceutical Industries Ltd.
and its subsidiaries agreed to a settlement with the county that resulted in
payments up to $116,000 to settle claims that company contributed to the
ongoing opioid crisis.
The settlements stem from a 2018 lawsuit the county filed
against approximately thirty defendants, including some of the biggest names in
the pharmaceutical industry. The lawsuit alleged the defendants had long
known that opioids were addictive and subject to abuse, particularly when used
long-term for chronic non-cancer pain, and should not be used except as a last
resort. However, the lawsuit stated, the defendants spent hundreds of millions
of dollars disseminating scientific materials and advertising that
misrepresented the risks of opioids’ long-term use. In 2023, the county filed an amended
complaint to include in the action supplemental defendants and causes of
action.
Schuyler County was one of many local governments that filed
lawsuits against the manufacturers and distributors of opioid pain killers. At
least 14 counties across New York sued the pharmaceutical companies for
fraudulent marketing practices.
Schuyler County’s lawsuit against other defendants remains
pending, Getman said, with the possibility of more settlements and additional
funding to the county still to come.
Said Getman: “One cannot put a price on lives lost and families
torn apart, but with the more than $862,000 expected to be delivered to
Schuyler County from these lawsuits, we can provide the county with financial
assistance to continue this battle and hold these companies responsible for
their role in the opioid epidemic.”
County Administrator M. Shawn Rosno agreed: "County
officials have expended significant resources to help its residents battle
opioid addiction and prevent further deaths. By voting to go forward with this
latest settlement, the County Legislature hopes to lessen the burden to
taxpayers for expenses related to the opioid crisis."
According to a February 2025 report by the National League
of Cities, the national opioid settlements have directly allocated funds to
thousands of state and local governments across the United States, enabling
cities and counties to invest funds in evidence-based solutions to address
their community’s needs.
“It is possible that reductions in drug overdose deaths are
associated with the opioid settlement payouts as localities start funding
strategies to support treatment and recovery,” the report noted.
Under the settlement, Sandoz does not admit liability or
wrongdoing.
Sandoz, a subsidiary of Sandoz Group AG, is a generic
pharmaceutical company which develops, manufactures and distributes and sells a
range of prescription medicines and protein and biosimilars worldwide. The
company also provides intermediary products including active pharmaceutical
ingredients, and biotechnology manufacturing services to other companies. It
provides active ingredients and pharmaceuticals in the areas of dermatology,
cancer, cardiovascular, respiratory, metabolism, central nervous system, pain,
ophthalmic, gastrointestinal, and hormonal therapies. Sandoz distributes
products to wholesalers, pharmacies, hospitals, and other healthcare outlets.
Sandoz is headquartered in Princeton, New Jersey, the US.
A complete copy of Schuyler County’s lawsuit can be found
here: https://tinyurl.com/5auyrmdc
A copy of the county’s resolution approving the settlement
can be found here: https://tinyurl.com/sandozschuyler
