Drug Distributors in Talks to Settle Opioid Litigation for $18 Billion
October 15 2019 - 4:56PM
Dow Jones News
By Sara Randazzo
Three major drug distributors are in talks to pay $18 billion to
settle sweeping litigation brought by state and local governments
blaming them for fueling the opioid crisis, people familiar with
the discussions said, potentially marking a broad resolution to
lawsuits that have shaken the pharmaceutical industry.
The three distributors -- McKesson Corp., AmerisourceBergen
Corp., and Cardinal Health Inc. -- would collectively pay $18
billion over 18 years under the deal currently on the table, the
people said. Johnson & Johnson is also involved in the
discussions to contribute additional money, some of the people
said.
Players up and down the pharmaceutical supply chain, including
drugmakers, distributors and pharmacies, have been sued by
virtually every state and thousands of city and county governments.
Over 2,000 lawsuits allege the industry's overly aggressive
marketing of prescription painkillers and lax oversight over drug
distribution contributed to widespread opioid addiction.
At least 400,000 people have died in the U.S. from overdoses of
legal and illegal opioids since 1999, according to federal data.
The lawsuits are seeking to recoup the costs borne by communities
grappling with widespread addiction, including burdens on emergency
services, medical care and foster services for children born to
addicted parents.
(More to come)
Write to Sara Randazzo at sara.randazzo@wsj.com
(END) Dow Jones Newswires
October 15, 2019 16:41 ET (20:41 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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