County attorney Stephen Abdella speaks at the Audit and Control Committee meeting Thursday.

Chautauqua County may be getting nearly $1 million from a proposed settlement agreement regarding the federal opioid crisis.

During Thursday’s Audit and Control Committee meeting, county lawmakers discussed the pending settlement.

According to a resolution that was passed by the committee, there is pending litigation regarding the opioid addiction crisis on behalf of New York state and its local subdivisions, in which Chautauqua County is a named plaintiff in the action.

The resolution notes that the action is against several defendants, including manufacturers of opioids, distributors of opioids, and chain pharmacies. The action alleges several causes of action against defendants Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc. and Janssen Pharmaceutica, Inc. (collectively “J&J”), based on claims that J&J contributed to the opioid epidemic by falsely promoting prescription opioids it manufactured and sold, and by falsely promoting the increased use of opioids directly and generally through various “front groups,” and failing to implement measures to prevent diversion of prescription opioids in connection with distribution of its products, all of which contributed to a public health crisis in Chautauqua County.

According to the resolution, the State Attorney General’s office has approved a settlement agreement and release form with J&J to settle the claims of the state and its subdivisions. Pursuant to the agreement, J&J shall pay the state and its subdivisions a minimum of approximately $98.5 million and a maximum of approximately $229.8 million, with Chautauqua County’s share between about $426,798 and about $996,051 over 10 years. In addition, J&J shall agree to cease the manufacture, sale, and promotion of opioids and opioid products in the state for 10 years.

County attorney Stephen Abdella believes the county’s settlement will be on the higher end of the proposed settlement. “At this point, it’s expected that that maximum amount will in fact be the amount,” he said during the meeting. “Our counsel is telling us that it will lean towards the $996,000.”

He also said that the payment for the outside counsel will not impact what the county receives. “The outside counsel fees are being handled through an outside funding source,” Abdella said.

According to the county’s resolution, the agreement provides that approximately 21% of the county’s final settlement proceeds will be unrestricted as to their use, and about 79% of the county’s final settlement proceeds may only be used for approved uses, which are defined to include the following categories: treating opioid use disorder; supporting people in treatment and recovery; connecting people who need help to help; addressing the needs of criminal-justice involved persons; addressing the needs of pregnant or parenting women and their families, including babies with Neonatal Abstinence Syndrome; preventing over-prescribing and ensuring appropriate prescribing and dispensing of opioids; preventing misuse of opioids; preventing overdose deaths and other harms; supporting law enforcement and first responders; supporting opioid abatement research; and supporting post-mortem efforts, such as toxicology tests, autopsies, investigations, indigent burial, and epidemiologic data.

Abdella said Chautauqua County is being asked to approve its settlement by Sept. 10. As long as other local governments across the state agree to similar resolutions, then the state is expected to accept the proposed settlement.

Abdella also said this may not be the only settlement that the county receives funding for. “There will be a second J&J settlement, most likely, I’m told, that will be additional monies,” he said.

The unanimously passed resolution will now go to the full legislature next week for final approval.