BREAKING: Top drug distributors ‘to pay $18billion to settle opioid lawsuits’
- McKesson Corp., AmerisourceBergen Corp. and Cardinal Health Inc. would pay the money back over 18 years under the proposed deal, according to reports
- State and local governments blame the companies for fueling the opioid crisis
- Johnson & Johnson is also thought to be part of talks to contribute money
- There are thousands of lawsuits connected to the prescription painkillers
- Opioids are now thought to be to blame for at least 400,000 death since 1999
- They began to be prescribed for long-term pain such as backaches
- Drug companies promoted that use, even as evidence grew of addiction
Top drug distributors are in discussions to pay $18billion to settle opioid lawsuits, according to reports.
McKesson Corp., AmerisourceBergen Corp. and Cardinal Health Inc. would pay the money back over 18 years under the proposed deal, sources told The Wall Street Journal.
The litigation was brought by state and local governments who blamed the companies for fueling the opioid crisis.
Johnson & Johnson is also thought to be part of talks to contribute more to the settlements.
There are thousands of lawsuits connected to the prescription painkillers and their contribution to widespread opioid addiction.
Nearly 2,700 lawsuits blame OxyContin maker Purdue Pharma for helping spark the opioid crisis.
In the 1990s, overprescribing started the first wave of the nation’s overdose crisis and opioids are now thought to be to blame for at least 400,000 deaths since 1999.
Johnson & Johnson said Tuesday: ‘We remain open to viable options to resolve these cases, including through settlement.’
Purdue Pharma asked a U.S. Bankruptcy Judge on Friday to pause litigation against the company and its owners over the objections of U.S. states that allege the company is trying to protect the controlling Sackler family.
Purdue’s request promises to be one of the most contentious of the company’s Chapter 11 bankruptcy case, which was filed in September to try to implement a settlement proposal it values at more than $10 billion.
Privately-held Purdue said last month it needed to pause more than 2,600 lawsuits so the company can reduce legal costs and try to win over more plaintiffs to its proposed deal.
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Protesters outside the McKesson Corp. annual meeting in Irving, Texas in July 2017
Opioids — previously used mostly for patients with cancer, at the end of their lives or with pain after surgery — began to be prescribed for long-term pain such as backaches.
Drug companies promoted that use, even as evidence grew of addiction and overdose.
McKesson, AmerisourceBergen and Cardinal Health are set to go to court go to court in Cleveland, Ohio on Monday.
There was no comment from all three companies when approached by The Wall Street Journal.
The deal still needs to be agreed by attorneys representing plaintiffs.