In 2020-2021, settlements were reached nationwide with Johnson & Johnson and the nation’s three largest drug distribution companies to resolve claims by state and local governments that these companies contributed to the opioid epidemic.

In August 2021, the Colorado Attorney General and local government leaders agreed to a joint framework for distributing the funds Colorado stands to receive from litigation settlements. All 64 counties and most municipalities signed onto the Colorado Opioids Summary Memorandum of Understanding (MOU) that established how opioid funds were to be divided and distributed within the State of Colorado. The broad participation by local governments ensured Colorado will receive its maximum share of funding from legal settlements.

Additional settlements continue to be reached, providing more funding for distribution. All settlement funds are required to be used for opioid abatement through prevention, treatment, and harm reduction strategies.

The settlements will be distributed according to a formula spelled out in the MOU:

• 10% directly to the State
• 20% directly to participating local governments
• 10% to specific abatement infrastructure projects
• 60% directly to Regions

El Paso and Teller Counties “opted-out” of the direct 20%, directing it to control of the Region 16 Opioid Abatement Council.