US to unveil $ 26 billion opioid deal with drug distributors, J&J – sources

U.S. state attorneys general and local government lawyers are expected to unveil a landmark $ 26 billion settlement this week resolving allegations that the three largest U.S. drug distributors and drugmaker Johnson & Johnson helped fuel an epidemic of opioids nationwide, people familiar with the matter said.

Under the proposed settlement, distributors McKesson Corp, Cardinal Health Inc and AmerisourceBergen Corp are expected to pay a total of $ 21 billion, while Johnson & Johnson said it will pay $ 5 billion.

More than 40 states are expected to support the settlement, the source said, while others may choose to go ahead with their own cases.

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States will have 30 days to decide whether to join the global deal, and then more time to try to convince their cities and counties to join the deal, the sources said.

McKesson previously said that of the $ 21 billion the three distributors would pay over 18 years, more than 90% would be used to address the opioid crisis, while the rest would be used to pay attorney fees and costs. complainants.

FILE PHOTO: A Johnson &; The Johnson Building is shown in Irvine, California, United States, on January 24, 2017. REUTERS / Mike Blake / File Photo

Several states have passed laws or entered into agreements with their political subdivisions to govern how settlement proceeds would be allocated in the event of a nationwide settlement.

The financial terms are in line with previous disclosures by the three distributors and J&J on what they expected to pay following lengthy settlement negotiations.

“There is still progress towards finalizing this agreement and we remain committed to providing certainty to parties involved and essential assistance to families and communities in need,” J&J said in a statement.

McKesson did not comment. The other two distributors did not immediately respond to a request for comment. They have all previously denied the wrongdoing.

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Nearly 500,000 people died of opioid overdoses in the United States from 1999 to 2019, according to the United States Centers for Disease Control and Prevention (CDC). The opioid crisis appeared to worsen during the COVID-19 pandemic.

The CDC said last week that preliminary data showed 2020 to be a record year for drug overdose deaths with 93,331, up 29% from the previous year. Opioids were involved in 74.7%, or 69,710, of these overdose deaths.

Distributors have been accused of lax controls that have diverted massive amounts of addictive pain relievers into illegal channels, devastating communities, while J&J has been accused of downplaying the risk of addiction.

Governments have said the money will be used to fund drug treatment, family support programs, education and other health initiatives to deal with the crisis.

Other settlements are also being negotiated, with opioid makers Purdue Pharma and Mallinckrodt Plc now working in bankruptcy courts to secure support for settlements worth more than $ 10 billion and $ 1 billion, respectively. $ 6 billion.

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The distributors have been in the midst of two nationwide lawsuits in the litigation, one in New York City and one in West Virginia.

Final arguments are expected in the West Virginia trial next week. Local communities in West Virginia had chosen not to participate in the proposed national agreement to pursue one on their own.