BALTIMORE — Of $579.9 million awarded to Baltimore in opioid settlements, $392.5 million has been received by the city, with nearly 40% going to legal fees, according to a Baltimore Sun analysis.

Not every drug company has paid the city in full. As of Oct. 1, Baltimore has received payments from six settlements, including one partial payment.

A seventh settlement worth over $150 million that has not yet been paid could face an appeal, city officials said.

Legal costs of $154.7 million reduced the amount currently available for efforts to mitigate the opioid crisis to $237.8 million, said Jonas Poggi, rapid response press secretary for the Mayor’s Office.

Mayor Brandon Scott signed an executive order in 2024, placing the bulk of settlement money into Baltimore’s Opioid Restitution Fund with a plan to disburse it to government services and community-based programs and organizations focused on providing services for opioid addiction recovery, harm reduction and treatment.

Where is the $579.9 million going, and how has it already been used?

The Baltimore Sun filed a public information request for details on spending from the Opioid Restitution Fund under the Maryland Public Information Act.

How much money has gone to lawyers?

Baltimore has paid $154.7 million in legal fees as of Oct. 1, according to city officials.

Those legal costs could also grow. Poggi said the city could not disclose exactly how much was spent to litigate each lawsuit.

The nearly 40% of the received funds that has been directed to legal fees is considered standard for large-scale lawsuits against corporations, according to Florida attorney Doug Burnetti.

“It is normal for attorneys to charge a contingent fee when hired by government entities and normal to use outside counsel, especially in complex or unusual litigation,” Burnetti said. “In fact, when Florida sued the tobacco industry many years ago they hired a group of private firms and paid a contingent fee. Some firms made around $250 million each when the case was resolved for several billion dollars.”

Burnetti said the use of outside council, rather than government-employed lawyers, helped Baltimore have more expertise on each case rather than spreading government resources thin.

“Using outside firms takes the burden off of the government lawyers who already have busy case loads and not enough time to devote to a very large and complex case such as a prescription drug case or tobacco company case,” he said. “(Paying) 33% or 40% is normal, but some states have limits to 25% and a max of a certain amount.”

How much money has gone into the fund after legal fees?

The city has banked $237.8 million into the Opioid Restitution Fund so far, according to the mayor’s office.

“The $237 million represents the total amount of money the City has received to date from all agreed-upon settlements after attorneys’ fees and litigation costs,” Poggi said.

Allergan, CVS, Cardinal and Teva have all paid their settlements in full. Walgreens paid Baltimore $45 million of its $80 million settlement in 2024, and the remainder is expected by December.

The city’s $25 million settlement from a lawsuit against Johnson & Johnson has been received, but the money has not been earmarked for distribution yet, Poggi said.

Monies not currently designated to a specific organization or government program remain in the Opioid Restitution Fund until they have been spent, he said.

A $152.4 million settlement from the Cencora and McKesson lawsuit, where a judge rejected a jury’s proposed award to the city and offered a lower amount, have yet to be received by Baltimore and are “subject to appeals,” according to Poggi.

As outlined in Scott’s 2024 executive order, the Opioid Restitution Fund is in a trust separate from Baltimore’s general fund. The fund can accrue interest, which will be reinvested back into opioid use abatement, an umbrella term that includes prevention, treatment, and recovery. The trust is meant to sustain the funds for at least 15 years, according to the Baltimore City Health Department.

The order requires 5% of the fund to be appropriated annually for opioid use abatement. Poggi said the city chose this requirement after observing other cities and jurisdictions redirecting their opioid settlements to different priorities or not using the funds at all.

“Because of this language and these requirements, the fund — and future interest earned on the fund — will be spent specifically on substance use abatement,” Poggi said.

Which government agencies have received money from the Opioid Restitution Fund?

The Sun analysis found $36.7 million has been claimed by government organizations. The organizations are expected to receive distributions from the Opioid Restitution Fund in Fiscal Year 2026, with the bulk of the allotment going to the Mayor’s Office of Recovery Programs, which is to receive $17.9 million over the course of the fiscal year.

As of Sept. 17, Baltimore City has disbursed $2,230,862.07 to city services and agencies, with the Mayor’s Office of Recovery Programs, which will oversee the grants, receiving the largest share at $1,630,409.

The funding to government agencies and community organizations has been guided by Baltimore’s Overdose Response Strategic Plan, which outlines the city’s goals, including reducing fatalities, increasing treatment options, supporting recovery, expanding services and minimizing stigma. Community listening sessions, held in July, also informed which organizations would be funded, the city said.

What local groups have received money from the Opioid Restitution Fund?

About $87 million has been earmarked to 22 community programs and organizations geared toward opioid addiction recovery, harm reduction and treatment. Disbursement of the funds began for seven organizations or programs.

“The city established a process to work with each of these organizations to define specific scopes of work for the use of the money,” Poggi said. “These agreements ensure that the funds are aligned with the city’s strategic response to the overdose crisis and public health best practices as outlined in the Overdose Response Strategic Plan. Additionally, these agreements make sure that a named organization isn’t doing the same work as another group or a city agency.”

Poggi said the community organizations that will receive funding were identified during legal proceedings with pharmaceutical companies, where the city selected each group based on its role in the community and the service provided.

Scott also committed $20 million to the Baltimore Health Department to spend on community groups over the next five years, bringing the total to $107 million for organizations.

How will the city keep track of how the money is spent?

The city said its grant agreements allow it to provide oversight of grantees by giving them specific guidelines and goals for the money they receive. Grantees are expected to spend funds on opioid abatement only and the agreements require status reports on implementation of programs as well as financial spending reports, Poggi said.

If a grantee does not comply with the agreement, its funding can be terminated, Poggi said. Grantees will also have monthly and quarterly reporting requirements, according to the city.

The Mayor’s Office of Recovery Programs will oversee grant agreements, keeping track of payments and whether recipients follow the guidelines.

Of the 22 groups, seven have already entered into agreements with the city to receive the money; however, the time frame for distributing the funds varies, Poggi said.

“So far, we have signed seven grant agreements with named organizations,” Poggi said. “The city’s goal is to have as many of the grant agreements as possible signed by the end of the year. Depending on the terms of the grant agreement, these organizations will receive funding over the next three to seven years.”

Seven entities had signed grant agreements as of Sept. 17, allowing distributions to begin. A combined $1,454,871.99 has been disbursed to Behavioral Health System Baltimore-988, Behavioral Health System Baltimore-Bmore POWER, Charm City Care Connection, Helping Up Mission, Maryland Coalition of Families, Roberta’s House and Turnaround Tuesday.

What’s next?

The Overdose Response Strategic Plan for 2025-2027 calls for the distributed funds to be reassessed every two years, revising the plan overall and possibly shifting priorities. In 2027, the plan will be revised again.

Moving forward, money from the Opioid Restitution Fund will be distributed throughout the next several years as funds are received.

The funds currently assigned to government agencies and community organizations are targeting the goals of the 2025-2027 strategic plan — addressing social determinants, helping avoid drug abuse before it starts, keeping drug users safe, helping people who want to stop, helping people who want to stop using drugs and supporting people in recovery.

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Senior Editor Steve Earley contributed to this article.

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