If approved by states and municipalities, the settlement would allow funds to be allocated to communities to pay for addiction and prevention services.
After two years of wrangling, the country’s three major drug distributors and a pharmaceutical giant have reached a $26 billion deal with states that would release some of the biggest companies in the industry from all legal liability in the opioid epidemic. The announcement was made Wednesday afternoon by a bipartisan group of state attorneys general. The offer will now go out to every state and municipality in the country for approval. If enough of them formally sign on to it, billions of dollars from the companies could begin to be released to help communities pay for addiction treatment and prevention services and other steep financial costs of the epidemic. In return, the states and cities would drop thousands of lawsuits against the companies and pledge not to bring any future action. The settlement binds only these four companies — the drug distributors Cardinal Health, AmerisourceBergen, McKesson, and Johnson & Johnson — leaving thousands of other lawsuits against many other pharmaceutical defendants, including manufacturers and drugstore chains, in the mammoth nationwide litigation still unresolved. But these four companies are widely seen as among the defendants with the deepest pockets. In an emailed statement, Michael Ullmann, executive vice president and general counsel of Johnson & Johnson, said: “We recognize the opioid crisis is a tremendously complex public health issue, and we have deep sympathy for everyone affected.
