Six U.S. states fail to join $ 26 billion opioid regulations with distributors, J&J

Aug 23 (Reuters) – At least six U.S. states, including Georgia, have failed to fully sign a $ 26 billion deal with three drug distributors and Johnson & Johnson (JNJ.N), which have been accused of fueling the country’s opioid epidemic, according to state attorneys general.

States had until Saturday to decide whether or not to back the proposed $ 21 billion settlement with McKesson Corp (MCK.N), AmerisourceBergen Corp (ABC.N) and Cardinal Health Inc (CAH.N) and a separate deal. of $ 5 billion with J&J.

But a sign that talks were continuing despite the deadline being passed, Georgia – the most populous state in the country – said on Monday it could end up backing the deal.

“We did not reject the agreement, but we did not join it because at the moment joining the national settlements does not guarantee the best outcome for Georgia and its counties, cities and citizens,” said a statement. emailed by the Attorney General’s office. , Christophe Carr. “We remain active in representing Georgia throughout the negotiations, and we will continue to seek comments from Georgian stakeholders.”

The state will plead its claims if necessary, according to the statement.

New Mexico, Oklahoma, Washington and West Virginia have also refused to join the agreements, their attorneys general said. New Hampshire accepted the settlement with distributors, but not the J&J agreement.

The complex settlement formula contemplates the participation of at least 44 states, but ultimately the companies decide whether a “critical mass” has joined and whether to finalize the deal.

The size of the colony is based on the number of participating states. Rather, those who refuse to join will seek greater recovery by continuing to fight defendants in court. Companies have already paid hundreds of millions in verdicts and other settlements. Read more

The deal, which was unveiled by 14 state attorneys general on July 21, aims to resolve more than 3,000 lawsuits accusing distributors of ignoring red flags that painkillers were being diverted to communities for illicit purposes. and that J&J minimized the risk of opioid addiction. .

The money would be used to fund treatments and other services.

The companies deny any wrongdoing, saying the drugs have been approved by the United States Food and Drug Administration and that the responsibility for increased sales of pain relievers lies with others, including doctors and regulators. .

McKesson said companies have until Sept. 4 to determine whether there is sufficient support for the deals and said the process is underway. Cardinal Health and AmerisourceBergen declined to comment and J&J did not immediately respond to a request for comment.

Support from two other states, Nevada and Alabama, also seemed questionable, according to people familiar with the matter.

The Nevada attorney general declined to comment and the Alabama attorney general did not respond to a request for comment.

The participation of states is closely linked to that of their local governments, which have led the majority of trials. Cities and counties in participating states would have until January 2 to register. Ultimately, $ 10.7 billion of the settlement money is tied to the extent to which communities participate.

North Carolina Attorney General Josh Stein, chief negotiator, said last month he expected “well north” of 40 states to join.

Reporting by Nate Raymond in Boston and Tom Hals in Wilmington, Delaware; Editing by Noeleen Walder and Karishma Singh

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