Qualified Settlement Fund

A Qualified Settlement Fund (QSF) is a court-established account used to hold and distribute settlement dollars in mass tort cases, such as the nationwide opioid litigation. In West Virginia, opioid settlement funds are deposited into a QSF and distributed according to the terms of the West Virginia First Memorandum of Understanding (MOU): a landmark agreement designed to ensure that these funds are used transparently, equitably, and for maximum public health impact.

In May 2023, the West Virginia First Foundation (WVFF) was formally established to manage the majority share of opioid settlement funds outlined in the MOU. As a private nonprofit, WVFF oversees the long-term, evidence-based distribution of these funds across six regions to support prevention, treatment, and recovery efforts statewide. The remaining shares are outlined as follows:

• 72.5% of the funds are managed by WVFF, a private nonprofit charged with overseeing the long-term, evidence-based distribution of opioid settlement dollars across six regions. The Foundation supports prevention, treatment, and recovery initiatives through strategic grantmaking and statewide planning.

• 24.5% of the funds are distributed directly to Local Governments, providing them with flexible resources to meet urgent community needs. These funds are separate from those administered by the Foundation, though WVFF is responsible for collecting and reporting on local expenditures annually.

• 3% of the funds are allocated to the Office of the West Virginia Attorney General, supporting statewide enforcement, compliance, and coordination efforts. These funds are also separate from the Foundation’s oversight.

The funds allocated from the Qualified Settlement Fund (QSF) to the Local Governments and Attorney General do not pass through WVFF; they flow directly from the QSF to the Local Governments and Attorney General. WVFF does not oversee how Local Governments use their 24.5% share; however, WVFF is responsible for collecting data and reporting those expenditures in accordance with the MOU.