The three largest U.S. drug distributors have agreed to pay $300 million to resolve claims by health insurers and benefit plans, which allege that these companies contributed to the deadly U.S. opioid epidemic.
This proposed class action settlement with McKesson Corp, Cencora Inc, and Cardinal Health Inc was disclosed in a federal court filing in Cleveland, Ohio, on Friday. The agreement still requires a judge’s approval.
These companies had previously agreed to a $21 billion settlement to address claims by state and local governments, which accused them of maintaining lax controls that allowed massive amounts of addictive painkillers to be diverted into illegal channels.
Paul Geller, a lawyer representing the plaintiffs, stated that Friday’s settlement covers third-party payers, such as union funds, that largely financed the overprescribed and overmarketed pills, as well as the treatment required when their plan beneficiaries inevitably suffered from opioid use disorder.
Although the distributors did not admit to any wrongdoing, they will collectively pay the $300 million, with McKesson covering 38.1%, Cardinal contributing 30.9%, and Cencora, previously known as AmerisourceBergen, paying 31%.
This case is one of thousands filed to hold various drug makers, distributors, and pharmacies accountable for the opioid addiction epidemic, which has resulted in hundreds of thousands of overdose deaths nationwide over the past two decades.
Litigation related to the epidemic has already resulted in more than $50 billion in settlements, largely with state and local governments.
