FAQs

This lawsuit is a class action known as San Miguel Hospital Corp., d/b/a Alta Vista Regional Hospital v. Johnson & Johnson, No. 1:23-cv-00903 (the “Lawsuit” or “Action”). The Honorable Judge Kea Riggs of the United States District Court for the District of New Mexico is overseeing the lawsuit. The people or entities who sued are called the “Plaintiffs,” and the companies they sued are called the “Defendants.”

The lawsuit alleges that to sell as many prescription opioids as possible, manufacturers misrepresented the risks and safety of prescription opioid use, distributors did not properly monitor, stop, or report suspicious orders, and pharmacies filled opioid prescriptions that were not written for legitimate medical purposes. It further alleges that as a result, hospitals now must spend additional money and resources to treat opioid-dependent patients and patients with opioid-related conditions that they would not have had to treat otherwise. Defendants deny that they did anything wrong.

No court, jury, or other authority has decided whether Defendants did anything wrong.

Settlements have now been reached with four Defendant groups.

There are four proposed Settlements with different groups of Defendants: The Distributor Class Action Settlement is with Defendants, Cencora, Inc. (f/k/a AmerisourceBergen Drug Corporation) (“Cencora”), Cardinal Health, Inc. (“Cardinal”), and McKesson Corporation (“McKesson”) (collectively, the “Settling Distributors”).

The Janssen Class Action Settlement is with Defendants, Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively, “Janssen”).

The Teva Class Action Settlement is with Teva Pharmaceuticals Industries, Ltd., Teva Pharmaceuticals USA, Inc., Cephalon, Inc., Actavis Pharma, Inc., Actavis LLC, Watson Laboratories, Inc. and Anda, Inc. (collectively, “Teva”).

The Allergan Class Action Settlement is with Allergan Finance, LLC (f/k/a Actavis, Inc. f/k/a Watson Pharmaceuticals, Inc.); Allergan Sales, LLC; and Allergan USA, Inc. (collectively, “Allergan”).

The non-settling defendants are Indivior, Inc. (f/k/a Reckitt Benckiser Pharmaceuticals, Inc.); Hikma Pharmaceuticals, Inc. (f/k/a West-Ward Pharmaceuticals, Inc.); Henry Schein, Inc.; Walgreen Co.; Walgreen Eastern Co., Inc.; CVS Orlando FL Distribution, L.L.C.; CVS Pharmacy, Inc.; CVS Rx Services, Inc.; The Kroger Co.; Safeway, Inc.; Albertson’s LLC; Albertsons Companies, Inc.; HBC Service Company; Giant Eagle, Inc.; Publix Super Markets, Inc.; and Walmart Inc. (f/k/a Wal-Mart Stores, Inc).

In a class action, one or more people or entities called “named plaintiffs” or “Class Representatives” sue(s) on behalf of people and entities with similar claims. Together, these people and entities are called a “Class” or “Class Members.” One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. A full list of the Class Representatives in this case is available in the Settlement Agreements which can be accessed by clicking here.

Neither the Court nor a jury has decided in favor of Plaintiffs or the Settling Defendants. Instead, both sides have agreed to settle. If the Court approves the Settlements, the parties will avoid the costs, delay, and uncertainty of continuing the lawsuit, and Class Members receive the benefits described in the Notice. Settlements do not mean that any law was broken or that the Settling Defendants did anything wrong. The parties believe that the Settlements are best for the Class.

Settlements were reached with only some of the Defendants. The lawsuit will continue against the non-settling defendants. Additional money may become available in the future as a result of a trial or future settlements. Alternatively, this case may be decided in favor of the non-settling defendants and no additional money may become available. There is no guarantee as to what will happen.

You are part of the Class and in the Settlements if you fall into one or more of the three following categories:

(1) You are an Acute Care Hospital in the United States that treated patients diagnosed with opioid use disorder and/or other opioid-related conditions at any time from January 1, 2009, through October 30, 2024 and you are not owned or operated by a federal, state, county, parish, city, or other municipal government. To be considered an Acute Care Hospital under the Settlements, you must (a) provide medical care and other related services for surgery, acute medical conditions or injuries for a period of treatment time that is, on average, less than 25 days; and (b) either (i) appear as either active or inactive in the American Hospital Directory® as a “short term acute care” hospital or a “critical access” hospital or (ii) have an emergency department that is subject to the Emergency Medical Treatment and Labor Act (“EMTALA”);

(2) You are an entity specifically identified in Exhibit A to the Settlement Agreements; and/or

(3) You are a named plaintiff in the actions listed on Exhibit B to the Settlement Agreements.

Even if you are part of the Class, you may be excluded from participating in one or more settlements if your claims against a Settling Defendant were released in an earlier settlement.

If you are not sure whether you are included or have any other questions about the Settlements, call the toll-free number, 1-877-354-3788. You may also send questions to the Notice and Claims Administrator at Acute Care Hospital Settlement, c/o A.B. Data, Ltd., P.O. Box 173034, Milwaukee, WI 53217.

If the Settlements are approved by the Court and become final, the Settling Defendants will pay money to settle the lawsuit in exchange for releases of claims against them. The Distributor Class Action Settlement Defendants will pay a total of $390,000,000 in one lump sum. The Janssen Class Action Settlement Defendants will pay a total of $110,000,000 in one lump sum.

The Teva Class Action Settlement Defendants will pay a total of $126,000,000 over eighteen years, with an immediate payment of $15,000,000 and subsequent annual payments made on a schedule set forth in the Teva Class Action Settlement Agreement. In addition, over the next seven years, Teva will make $49,000,000 worth of Naloxone Hydrochloride Nasal Spray kits available, free of charge, for Class Members who register for the Naloxone Kit Program.

The Allergan Class Action Settlement Defendants will pay a total of $25,000,000 over three years, with an immediate payment of $8,333,333 and two subsequent annual payments in the same amount.

These Settlement Funds (the Settlement Amounts plus interest) will be used to pay money to qualifying Class Members, attorney’s fees and expenses, notice and administration costs, claims administration costs and expenses, taxes and tax expenses, and any Service Awards to the Class Representatives.

More information and the specific released claims are defined in the Settlement Agreements, available by clicking here.

You can get a payment from the Settlement Funds if you submit a valid claim. You can choose between two options.

OPTION 1: You can fill out and submit a Registration Form and choose the “Quick Pay” option. If you select this option and your claim is valid, you do not have to fill out a Claim Form or provide claims data. If you are eligible for all four Settlements and all four Settlements become effective, you will get a $5,000 payment. By selecting this option, you agree to be bound by all four proposed Settlements.

OR

OPTION 2: You can fill out and submit a Registration Form, Business Associate and Confidentiality Agreement, and Claim Form with the required supporting documents, information, and claims data. The amount of your total payment will depend on the number of claimants, the amount, types of costs, and where you treated patients with opioid use disorder; the amount of charges that were not reimbursed; the units of morphine milligram equivalents shipped to your service area, pro-rated opioid use disorder rates per state, opioid overdose deaths in your service area, operational impact, the percentage of opioid related patients you had out of your total patients, and how actively you’ve participated (if at all) in litigation against an opioid manufacturer and/or Settling Defendant. If you select this option, submit a valid claim, and agree to be bound by each Settlement you are eligible to receive funds from, you will get a payment no less than what you would receive under the “Quick Pay” option.

Also, one non-profit, qualifying Class Member may be awarded up to $3,000,000 to maintain its formal abatement plan and opioid use disorder treatment program. A separate notice will be sent about how to apply for these funds.

Payments will be made based on a Plan of Allocation approved by the Court. Under the Plan of Allocation, if one or more Settlements does not become effective or if a Class Member is ineligible for one or more Settlements by reason of a prior release, then the $5,000 “Quick Pay” amount will be reduced proportionally. The proportion of the reduction is determined by comparing the up-front cash contributed by the Settlement(s) at issue with the total up-front contributions of the four Settlements. Access to the proposed Plan of Allocation is available by clicking here. The Court may approve or modify the proposed Plan of Allocation without additional notice.

To make a claim for a payment from the Settlement Funds, you must fill out a Registration Form and submit it via email to info@acutecarehospitalsettlement.com no later than March 4, 2025. If you choose the “Quick Pay” option, you do not need to fill out a Claim Form or provide claims data. If you do not choose the “Quick Pay” option, the Notice and Claims Administrator will send you a link to a SFTP where you must fill out and submit a Business Associate and Confidentiality Agreement and Claim Form with any applicable supporting documents, information, and claims data no later than March 4, 2025. The Registration and Claim Forms include more detailed instructions. Forms are available by clicking here. If you do not submit a timely claim with the required information and documents, you will not receive a payment from the Settlement Funds. Unless you timely excluded yourself from the Settlements, you will still be bound by the Settlements, the Judgments, and the releases contained in them.

No.

If you want to make a claim for a payment from the Settlement Funds, you must complete a Registration Form. If you choose the “Quick Pay” option, you do not need to provide claims data with your claim. If you do not choose the “Quick Pay” option, you must fill out and submit a Registration Form, Business Associate and Confidentiality Agreement, and Claim Form.

If you previously filed a claim and received a payment from the Chapter 11 cases Mallinckrodt plc, No. 20-12522 in the U. S. Bankruptcy Court for the District of Delaware or Endo, No. 22-22549, in the U.S. Bankruptcy Court for the Southern District of New York, you do not need to provide your claims data or the related information again with your Claim Form.

Distributions will be made to qualifying Class Members after the Court has finally approved the Settlements, all claims have been processed, and any appeals are resolved.

If there are any Settlement Funds remaining after all claims are processed, the funds will be distributed based on the Plan of Allocation or to an organization approved by the Court. No remaining funds will be returned to the Settling Defendants.

Unless you timely exclude yourself from the Settlements, you can’t sue or be part of any other lawsuit against the Settling Defendants about the claims in this case. Class Members will be bound by all Court orders and decisions. More information about the releases, or claims that you give up, may be found in the Settlement Agreements, available by clicking here.

The Court appointed the following attorneys to represent you and the other Class Members as “Class Counsel”:

You will not be charged for contacting these lawyers. If you want to be represented by another lawyer, you may hire one at your own expense.

Class Counsel will file a motion for an award of attorneys’ fees and expenses that will be considered at the Fairness Hearing. Class Counsel will ask to be reimbursed for litigation expenses and for attorneys’ fees of up to 1/3 of the Settlement Funds, plus interest earned on these amounts at the same rate as earned by the Settlement Funds.

If the Court grants the lawyers’ requests, these payments will be made from the Settlement Funds. You will not have to pay these lawyers out of your own pocket.

The attorneys’ fees and expenses requested will be the only payment to Class Counsel for their considerable time and effort in achieving these Settlements and their risk in undertaking this representation on a wholly contingent basis, including the expenses they advanced without any guarantee of repayment. The Court will decide the amount of fees, expenses, and/or Service Awards and may award less than the amount requested by Class Counsel.

Class Counsel’s motion for attorneys’ fees, costs and expenses, and the Class Representative Service Awards will be filed with the Court and made available on or before December 20, 2024, by clicking here.

If you are a Class Member, you may tell the Court what, if anything, you do not like about one or more of the Settlements, the Plan of Allocation, and/or Class Counsel’s requests for attorneys’ fees and expenses and Class Representative Service Awards, by filing an objection. For your objection to be considered, you must file your objection with the Clerk of the Court by January 6, 2025, at the U. S. District Court for the District of New Mexico, 333 Lomas Blvd. NW, Albuquerque, NM 87102. If your written objection is not filed by that date, you will lose the ability to object to these Settlements. You must also mail a copy of your objection to Class Counsel and counsel for the Settling Defendants, so it is received by January 6, 2025, at the addresses below:

Class Counsel:

Your objection must consist of a signed letter stating the Settlements that you wish to object to in San Miguel Hospital Corp., d/b/a Alta Vista Regional Hospital v. Johnson & Johnson, No. 1:23-cv-00903. Your written objection must include:

• The name, address, and telephone number of the objector;
• A statement that you are objecting to the proposed Settlement(s), Plan of Allocation, request for attorneys’ fees and expenses, and/or request for Service Awards for the Class Representatives;
• A statement describing your objections;
• Your reasons for objecting, and any documents or supporting evidence you want to show the Court;
• A statement saying if your objection applies only to you, a part of the Class, or the entire Class;
• A list of all class actions in which you and your lawyer (if you have one) have previously objected;
• Documents showing you are a Class Member (for example, a document showing you are an Acute Care Hospital that treated patients with opioid use disorder);
• A statement of whether you (or your lawyer) intend to seek permission to appear and speak at the Fairness Hearing;
• The name of any lawyers who will seek to appear on your behalf at the Fairness Hearing;
• A statement saying you submit to the jurisdiction of the Court about your objection, request to be heard, the Settlements, and the Settlements’ terms; and
• Your signature (you must personally sign the letter).

If your written objection is not filed or received by January 6, 2025 or does not include the required information, you will lose the ability to object to the proposed Settlement(s), Plan of Allocation, request for attorneys’ fees and expenses, and request for Service Awards for the Class Representatives, unless otherwise ordered by the Court.

If you object, you will remain a Class Member, and if you want to request a payment from the Settlement Funds, you also must file a claim by the deadlines, as described above.

If you do not want the benefits (or a payment) offered by the Settlements, do not want to be legally bound by the terms of the Settlement Agreements, and you want to keep your right to sue all or some of the Settling Defendants about the claims in this case, you must exclude yourself. This is also called “opting out.” If you want to exclude yourself from one or more Settlements, you must send a written statement with the title “Opt-Out Form.” Your request must include:

• Your name, address, telephone number, and email address (if available);
• Your National Provider Identifier (if available) and CMS Certification Number (if available);
• A list of your current and former names, including any and all names under which you do or have done business since January 1, 2009;
• A statement saying which Settlements you want to be excluded from in San Miguel Hospital Corp., d/b/a Alta Vista Regional Hospital v. Johnson & Johnson, No. 1:23-cv-00903;
• Documents showing that you would be a Class Member if you do not opt out;
• A statement that you certify, under penalty of perjury, that in accordance with 28 U.S.C. § 1746, you are legally authorized to exclude yourself from the Settlement(s); and
• Your signature.

You must mail your Opt-Out Form so it is received no later than January 6, 2025, at the following address:

Notice and Claim Administrator
Acute Care Hospital Settlement
EXCLUSIONS
P.O. Box 173011
Milwaukee, WI 53217

You must also email your Opt-Out Form so it is received by Class Counsel and the Settling Defendants no later than January 6, 2025, at the following email addresses: OptOuts@acutecarehospitalsettlement.com

No. You cannot make a claim or get a payment in any Settlements from which you timely excluded yourself.

No. If the Court approves the proposed Settlements, and you do not exclude yourself, you give up (or “release”) all the claims related in any way to the conduct at issue in this lawsuit as against the Settling Defendants and all Released Entities as defined in the Settlement Agreements.

Objecting is simply telling the Court that you do not like something about the Settlements. You can object only if you do not exclude yourself from the Settlements. Excluding yourself is telling the Court that you do not want to be part of the Settlements. If you exclude yourself, you have no basis to object because the Settlements no longer affect you. If you are a Class Member and you do nothing, you will remain in the Settlements and be bound by all orders in this lawsuit. You will also give up your rights to seek a payment from these Settlement Funds, object to the Settlements, speak at the hearing about the Settlements, or be part of another lawsuit against the Settling Defendants for any and all claims released by the Settlement Agreements. If there are future settlements or judgments, you will be sent a notice with instructions on how to receive a benefit at that time.

The Court will hold a Fairness Hearing on March 4, 2025, at 9:00 a.m. Mountain Time, before the Honorable Judge Kea Riggs, at the U. S. District Court for the District of New Mexico, Pete V. Domenici Courthouse, 333 Lomas Blvd. NW, Albuquerque, NM, 87102, 540 Bonito Courtroom.

At this hearing, the Court will consider whether the Settlements and Plan of Allocation are fair, reasonable, and adequate, if the Settlements should be finally approved; if the Judgments provided under the Settlement Agreements should be entered, and other matters. The Court may also decide whether to award attorneys’ fees and expenses and Service Awards to the Class Representatives. If there are objections, the Court will consider them and may listen to people who have asked to speak at the hearing. After the hearing, the Court will decide whether to approve the Settlements and the Plan of Allocation. We do not know how long these decisions will take.

The hearing may be moved to a different location or time without additional notice. For updated information about the hearing, you may check this website, contact Class Counsel, or access the court docket for this case as described in the “Getting More Information” section.

No, you do not have to attend the Fairness Hearing. Class Counsel will answer any questions the Court may have.

If you send an objection, you do not have to come to Court to talk about it. As long as you submitted your written objection on time, to the proper addresses, and it meets the requirements in the Notice, the Court will consider it.

But if you want to attend, you are welcome to do so at your own expense. You may also hire another lawyer to attend for you, but you will be responsible for paying that lawyer.

If you object, you may ask the Court for permission to speak at the hearing. Your objection must include a request to speak, be timely submitted, and meet the other requirements in the Notice, including those listed in the “Option 2 – Object to the Settlement” section on Pages 9-10.

Ultimately, the Court will decide who will be allowed to speak at the hearing.

The Notice summarizes the Settlements. The precise terms and conditions of the Settlements are detailed in the Settlement Agreements. If there are any inconsistencies between the Notice and the terms of the Settlement Agreements, the Settlement Agreement terms control.

The records in this Action may be examined and copied during regular office hours, and subject to customary copying fees, at the Clerk of the United States District Court for the District of New Mexico. For a fee, all papers filed in this Action are available at www.pacer.gov.

In addition, the Settlement Agreements, the Notice, the Registration and Claim Forms, Court orders, and the Plan of Allocation are available by clicking here. You may contact the Notice and Claims Administrator at 1-877-354-3788 if you have any questions about the Action or the Settlements.

Please do not write or call the Court, the Court Clerk’s office, or the Settling Defendants with questions about the Settlements or the claims process.

The Class for each Settlement shall consist of all entities that fall within one or more of the following categories:

1. All Acute Care Hospitals in the United States that (i) are not owned or operated by a federal, state, county, parish, city, or other municipal government; and (ii) treated patients diagnosed with opioid use disorder and/or other opioid-related conditions at any time from January 1, 2009, through October 30, 2024;
2. All entities listed on Exhibit A of each Settlement Agreement; and
3. All Plaintiffs in the Other Actions listed on Exhibit B of each Settlement Agreement.

Exhibit A and B are non-exhaustive lists and do not purport to identify all members of the Class.

The following are excluded from the Class for each Settlement Agreement:

1. Any Acute Care Hospital whose Released Claims have been released by any other settlement with the Defendants party to the Settlement Agreement.

The Class Member or Settlement Class Member means an entity that falls within the definition of the Class and does not elect to opt out of the Class. For the avoidance of doubt, each Class Representative is a Class Member.

A Qualifying Class Member means Class Members that submit a Registration Form and/or Claim Form and that have been determined by the Notice and Claims Administrators to be eligible under the Plan of Allocation to receive an Allocated Amount.

Allocated Amount means the amount of Net Settlement Funds payable to the Qualifying Class Member at issue.

The Net Settlement Funds are the Settlement Funds, less the following payments as set forth in Section VII B.1. of the Settlement Agreement:

1. To pay reasonable fees and costs, including legal fees, as compensation to the Escrow Agent for services rendered, as provided for in Section 7 of the respective Escrow Agreement and Exhibit C of the Settlement Agreements;
2. To pay, up to a total of twelve million U.S. Dollars ($12,000,000.00), for Notice and Administrative Costs reasonably and actually incurred in connection with providing notice to the Class in connection with administering and distributing the Net Settlement Funds to Class Members, and in connection with paying escrow fees and costs, if any;
3. To pay all costs and expenses, if any, reasonably and actually incurred in soliciting claims and assisting with the filing and processing of such claims;
4. To pay the Taxes and Tax Expenses as defined in the Settlement Agreements;
5. To pay any Fee and Expense Award, and any Service Awards to Class Representatives, that are approved by the Court, subject to and in accordance with the Agreement; and

To distribute the balance of the Net Settlement Funds to Class Members as allowed by the Agreement, the Plan of Allocation, or order of the Court.

An Acute Care Hospital means an entity that, at any time on or after January 1, 2009: (a) provides medical care and other related services for surgery, acute medical conditions, or injuries for a period of treatment time that is, on average, less than 25 days; and (b) either (i) appears as either active or inactive under its current or former name, including any hospital that has changed its name through merger, acquisition, or any other change to its corporate form, in the American Hospital Directory® as a “short term acute care” hospital or a “critical access” hospital, or (ii) includes an emergency department that is subject to the Emergency Medical Treatment and Labor Act (“EMTALA”), 42 U.S.C. § 1395dd, et seq.