By Jonathan Stempel

NEW YORK (Reuters) -Indivior reached an $86 million settlement with 16 U.S. states over the drug manufacturer's alleged role in spreading opioid addiction across the United States, New York Attorney General Letitia James said on Friday.

James said the settlement in principle concerned Indivior's manufacture of buprenorphine-based products meant to treat opioid abuse, but which allegedly can fuel addiction if misused.

The North Chesterfield, Virginia-based company was accused of improperly targeting sales to doctors running pill mills and failing to monitor suspicious orders, leading to inappropriate prescriptions.

Indivior's buprenorphine-based products include Sublocade and Suboxone.

"When companies like Indivior exploit those in the thralls of addiction for profit, their behavior must be stopped," James said in a statement.

She said the $86 million will be used over five years for opioid addiction treatment, recovery and prevention.

Indivior did not immediately respond to requests for comment.

It said on Thursday it set aside $75 million for an expected settlement, reflecting the net present value of the payout. A final settlement must still be negotiated.

More than 800,000 people in the United States died of opioid overdoses between 1999 and 2023, the U.S. Centers for Disease Control and Prevention has said.

Indivior remains a defendant in more than 400 civil lawsuits accusing manufacturers, distributors and retailers of ignoring red flags about how opioids have been prescribed and used, and marketing them improperly as a safe means to treat chronic pain.

Reckitt Benckiser spun off Indivior in 2014. Both companies have offices in Slough, England.

James said the Indivior settlement was negotiated by her office and the attorneys general of Illinois, Tennessee, Utah and Virginia.

California, Colorado, Delaware, Georgia, Idaho, Iowa, Massachusetts, North Carolina, Ohio, Oregon and Vermont were also involved.

(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama and Marguerita Choy)