Elwood, Pendleton opt out of state opioid settlement

Rebecca Bibbs, The Herald Bulletin, Anderson, Ind.
·2 min read

Jun. 24—ELWOOD — Elwood and Pendleton are among a group of Indiana municipalities opting out of the state's portion of a national settlement with the manufacturers and distributors of opioids, such as Oxycontin.

Other Indiana cities opting out include Indianapolis, Fishers and Noblesville.

The Elwood Common Council is expected to approve a resolution opting out of the settlement at a specially called telephone-only meeting at 7 p.m. Monday. The public can access the meeting by calling 978-990-5070 with the access code of 1391905#.

Elwood Mayor Todd Jones declined to comment on the resolution because of an ongoing independent lawsuit. About half of Indiana's cities have filed or joined lawsuits seeking to recover money spent on law enforcement, treatment programs and prevention.

Elwood, Alexandria and Pendleton and Madison County in 2017 and 2018 joined lawsuits filed in federal court by the Indianapolis-based law firm of Cohen & Malad. The cities and counties joined the lawsuits on a contingency basis, meaning they will not pay unless a successful judgment is made.

Council President Chet Babb said the Pendleton Town Council voted Tuesday to opt out of the settlement.

Alexandria Mayor Todd Naselroad said officials there have not yet decided whether they will participate in the state's settlement or opt out.

Madison County commissioners could not be reached for comment Wednesday.

Based on the language of the resolution, Elwood is trying to preserve its capacity to reap more money from an independent settlement than it would receive from the state because of legislation adopted by the legislature and signed into law by Gov. Eric Holcomb.

The national settlement from distributors McKesson, Cardinal Health and AmerisourceBergen and manufacturer Janssen, a subsidiary of Johnson & Johnson, is expected to be worth more than $26 billion.

Officials at the Indiana attorney general's office have said the state also might join lawsuits against Purdue Pharma, maker of OxyContin, and its owners, the Sackler family.

Indiana's share is estimated to be worth about $700 million over an 18-year period. The money would be used to combat drug abuse. The funds, which would be under the control of the Indiana Family and Social Services Administration, are expected to be shared with communities that did not join lawsuits.

All local governments are assumed to agree with the settlement unless they opt out by June 30; however, city officials have an additional 60 days to change their minds and again opt into the settlement.

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@RebeccaB_THB, or call 765-640-4883.