By Nate Raymond
U.S. Drug Distributors Settle Opioid Claims for $300 Million
(Reuters) – The three largest U.S. drug distributors have agreed to pay $300 million to resolve claims by health insurers and benefit plans that they contributed to the deadly opioid epidemic, as detailed in court documents filed on Friday.
The proposed settlement involves McKesson Corp (NYSE:MCK), Cencora Inc, and Cardinal Health Inc (NYSE:CAH) and requires judicial approval after being disclosed in federal court in Cleveland, Ohio.
Previously, these companies consented to pay $21 billion to resolve state and local government claims of their lax controls that allowed vast quantities of addictive painkillers to be misused.
Lawyer Paul Geller, representing the plaintiffs, stated that the latest agreement addresses third-party payers, including union funds that financed both the overprescribed pills and subsequent treatment for victims of opioid use disorder.
The companies did not admit any wrongdoing as part of this settlement. Payments will be distributed as follows: 38.1% by McKesson, 30.9% by Cardinal, and 31% by Cencora, formerly known as AmerisourceBergen (NYSE:COR).
This case is one among thousands, aiming to hold various drug manufacturers, distributors, and pharmacies accountable for the addiction crisis that has led to hundreds of thousands of overdose deaths in the last two decades. The litigation has thus far resulted in settlements exceeding $50 billion, primarily with states and local governments.
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