Staff Contact: Shawn Billings
Three major drug distributors and a large drug manufacturer are closing in on a $26 billion deal with state and local governments that would end thousands of lawsuits over the companies’ role in the opioid epidemic. The deal is $4 billion more than an offer made a year ago, which was rejected by many states and municipalities. A major difference in the latest offer is $2 billion earmarked for private lawyers who represent cities, counties and some states.
If the deal is finalized, four of the most prominent defendants in the nationwide litigation — McKesson, Cardinal Health, AmerisourceBergen, and Johnson & Johnson — no longer would be at risk from future opioid lawsuits by these governments. Other drug manufacturers and the national pharmacy chains still are facing thousands of such cases.
Most of the money from the settlement deal is intended to help pay for treatment and prevention programs in communities ravaged by addiction and overdoses.