Indivior Reaches $86 Million Settlement with 16 States Over Opioid Allegations

Indivior (INDV.L) has agreed to an $86 million settlement with 16 U.S. states following allegations that the drug manufacturer played a role in the opioid addiction crisis, New York Attorney General Letitia James announced last Friday.

The settlement concerns Indivior's production of buprenorphine-based products, such as Sublocade and Suboxone, which are intended to treat opioid abuse but can allegedly fuel addiction if misused. The North Chesterfield, Virginia-based company faced accusations of targeting sales to doctors operating pill mills and failing to monitor suspicious orders, resulting in inappropriate prescriptions.

"When companies like Indivior exploit those in the throes of addiction for profit, their behavior must be stopped," said James in a statement. She noted that the $86 million will be allocated over five years for opioid addiction treatment, recovery, and prevention.

Indivior did not immediately respond to requests for comment. The company previously set aside $75 million in anticipation of the settlement, reflecting the net present value of the payout. A final settlement agreement is still pending.

According to the U.S. Centers for Disease Control and Prevention, more than 800,000 people in the United States died from opioid overdoses between 1999 and 2023. Indivior is also a defendant in over 400 civil lawsuits that accuse manufacturers, distributors, and retailers of ignoring warnings about the prescription and use of opioids and promoting them improperly as safe treatments for chronic pain.

Reckitt Benckiser (RKT.L) spun off Indivior in 2014, and both companies have offices in Slough, England. The settlement was negotiated by Attorney General James' office along with the attorneys general of Illinois, Tennessee, Utah, and Virginia, with additional participation from California, Colorado, Delaware, Georgia, Idaho, Iowa, Massachusetts, North Carolina, Ohio, Oregon, and Vermont.

Source: Reuters