Opioid Payments

NEW YORK — The Second Circuit reversed a ruling that had blocked the enforcement of part of New York’s Opioid Stewardship Act, which requires opioid manufacturers and distributors to collectively pay $100 million annually to support statewide programs that provide opioid treatment, recovery, prevention and education services. 

The court ruled that the primary purpose of the payment is not to punish or regulate the drug companies but to “raise revenue,” which makes it a tax, depriving the lower court of subject matter jurisdiction.

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