California Attorney General Xavier Becerra on Tuesday announced a settlement agreement between state attorneys general, local subdivisions, and Mallinckrodt (MNK), its subsidiaries, and certain other affiliates.

MNK, the largest generic opioid manufacturer in the US, agreed to pay $1.6 billion to a trust that will cover opioid addiction treatment costs. The manufacturer also agreed to additional terms, such as the prohibition of opioid product marketing. MNK must also ensure that there are systems that prevent opioids from falling into the wrong hands.

Opioids are the largest cause of drug overdose deaths in the US, involved in more than 47,600 deaths in 2017. There have been around 3,000 lawsuits filed against drug manufacturers, accusing them of deceptive marketing that promoted the use of addictive painkillers and led to more than 400,000 deaths since 1999.

Becerra stated: “Nothing can undo the devastating loss and grief inflicted by the opioid epidemic upon victims and their families, but this settlement with Mallinckrodt is an important step in the process of healing our communities.”