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The companies say “enough” US states have joined a settlement resolving claims they fueled the opioid epidemic, allowing it to move forward.
Three major drug distributors and U.S. drugmaker Johnson & Johnson to move to proposed $ 26 billion settlement to resolve claims they fueled the opioid epidemic after “enough” states joined in. them, the companies announced on Saturday.
The companies had until Saturday to decide whether enough states supported the proposed $ 21 billion settlement with McKesson Corp, AmerisourceBergen Corp and Cardinal Health Inc and a $ 5 billion deal with J&J.
Distributors said 42 states, five territories and Washington, DC, had signed the agreement. The exact tally of the J&J-related deal was not immediately clear.
The companies will make their first annual settlement payment in escrow no later than September 30, the distributors said. The final amount will depend on several factors, including the final turnout from states and political subdivisions, they added.
North Carolina Attorney General Josh Stein, a senior settlement negotiator, called the level of support “showing remarkable unity and commitment across the country to resolve this issue.”
The settlement’s complex formula envisioned participation from at least 44 states, but ultimately the companies had to decide whether a “critical mass” had joined and whether they should finalize the deal.
Eight states had previously said they had not fully signed by the August 21 deadline: Alabama, Georgia, Nevada, New Mexico, Oklahoma, Washington, West Virginia.
Cities and counties in participating states also have until January 2 to join. At the end of the day, $ 10.7 billion is tied to the participation of communities.
The deal, unveiled by 14 state attorneys general on July 21, is designed 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 has minimized the risk of opioid addiction.
The money would fund treatment 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 doctors, regulators and others.
The deal is separate from a settlement resolving similar claims against OxyContin maker Purdue Pharma LP and its wealthy Sackler family owners. A bankruptcy judge on Wednesday approved the deal, which Purdue values at more than $ 10 billion.
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