A representative from the Kansas Attorney General’s office updated the Sunflower board on the status of major opioid-related legal resolutions and how they may affect state programs. The official said Kansas should expect “north of $30,000,000” from the Purdue bankruptcy plan and related arrangements, paid over roughly 15 years, and described a separate package of smaller “secondary manufacturer” settlements that will add about $5,000,000 to Kansas over various schedules.
The official told the board the Purdue resolution is a combined process: a bankruptcy plan that must be approved by a federal bankruptcy court and a separate settlement agreement that requires approval by a Kansas court. “Expect north of $30,000,000 for Kansas over about 15 years,” the attorney general’s office representative said, adding that prepayment options and other bankruptcy contingencies could adjust timing and present value.
On secondary manufacturer settlements, the official said the amounts are smaller but noted a product component could supply naloxone to the state naloxone program. “We will probably utilize a similar process” to earlier product distributions, the representative said, but cautioned nothing is finalized. The official described a separate package of eight small settlements and said an embargoed press release had been issued the prior day.
Board members asked how multi-year settlement streams are protected if a paying company later declares bankruptcy. The official said past experience (Endo) shows terms may be renegotiated and that settlements often include prepayment rights that can mitigate long-term risk. “At least one case, we’ve already had that problem…we negotiated an alternate resolution to get us the most money that we could in a short term payment,” the representative said.
The official also noted media interest in Kansas’s handling of opioid recovery funds and said the state will likely refine its annual reporting to better separate allocations from distributions and to be clearer to the public. On the cumulative recovery amount, the official gave a rough projection: “I estimate projection is that we’re going to cross around $400,000,000 for total recovery for Kansas,” but added the figure is not finalized and that timing of first payments from the Purdue process is unlikely to be this calendar year.
The board asked several follow-up questions about protections such as liens or escrow and about how product components might be distributed; the official said those details will be worked out as agreements finalize and that staff will provide updates to the board as the processes proceed.
The update did not include formal board action; members took the report and asked questions for clarification.