Distributors Reach Opioid Settlement Agreement With New York State
July 20 2021 - 9:17AM
Business Wire
AmerisourceBergen (NYSE: ABC), Cardinal Health (NYSE: CAH) and
McKesson (NYSE: MCK) announced today that they have agreed to pay
up to $1.179 billion in a settlement with the State of New York and
its participating subdivisions, including Nassau and Suffolk
Counties, to resolve opioid-related claims. This settlement was
negotiated in connection with the ongoing negotiations toward a
broad resolution under the previously disclosed settlement
framework intended to resolve claims brought by other states,
counties and other political subdivisions. The companies view
today’s settlement as an important step toward finalizing a broad
settlement with states, counties, and political subdivisions. If
the broad settlement is reached, New York and its participating
subdivisions will become part of that broader agreement.
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This settlement reflects an agreement of the plaintiffs to
dismiss the cases, which are currently being tried, in exchange for
the distributors’ agreement that New York and its participating
subdivisions will receive a settlement amount consistent with their
allocations under the broad settlement framework, as well as
certain attorneys’ fees and costs.
While the companies strongly dispute the allegations at issue in
the trial, they believe this resolution will allow the companies to
focus their attention and resources on the safe and secure delivery
of medications and therapies while delivering meaningful relief to
affected communities, and will also support efforts to achieve a
broad resolution under the previously disclosed framework.
The distributors remain deeply concerned about the impact the
opioid epidemic is having on communities across the nation and
remain committed to being part of the solution.
Cautionary Statements Regarding Forward Looking
Statements
The preceding descriptions of a resolution of certain
opioid-related claims against pharmaceutical distribution companies
constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, that involve risks and
uncertainties that could cause actual results to differ materially
from those in those statements. It is not possible to identify all
such risks and uncertainties. The reader should not place undue
reliance on forward-looking statements, which speak only as of the
date they are first made. Except to the extent required by law, the
companies undertake no obligation to publicly update
forward-looking statements. Investors should read the important
risk factors described in each company’s Form 10-K, Form 10-Q and
Form 8-K reports filed with the Securities and Exchange
Commission.
About AmerisourceBergen
AmerisourceBergen fosters a positive impact on the health of
people and communities around the world by advancing the
development and delivery of pharmaceuticals and healthcare
products. As a leading global healthcare company, with a foundation
in pharmaceutical distribution and solutions for manufacturers,
pharmacies and providers, we create unparalleled access, efficiency
and reliability for human and animal health. Our 41,000 global team
members power our purpose: We are united in our responsibility to
create healthier futures.
About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals, a global
manufacturer and distributor of medical and laboratory products,
and a provider of performance and data solutions for healthcare
facilities. With 50 years in business, operations in more than 40
countries and approximately 48,000 employees globally, Cardinal
Health is essential to care. Information about Cardinal Health is
available at cardinalhealth.com.
About McKesson Corporation
McKesson Corporation is a global leader in healthcare supply
chain management solutions, retail pharmacy, community oncology and
specialty care, and healthcare information solutions. McKesson
partners with pharmaceutical manufacturers, providers, pharmacies,
governments and other organizations in healthcare to help provide
the right medicines, medical products and healthcare services to
the right patients at the right time, safely and cost-effectively.
United by our ICARE shared principles, our employees work every day
to innovate and deliver opportunities that make our customers and
partners more successful - all for the better health of patients.
McKesson has been named a “Most Admired Company” in the healthcare
wholesaler category by FORTUNE, a “Best Place to Work” by the Human
Rights Campaign Foundation, and a top military-friendly company by
Military Friendly. For more information, visit
www.mckesson.com.
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AmerisourceBergen Investor
Contact: Bennett S. Murphy 610-727-3693
bmurphy@amerisourcebergen.com
Media Contact: Gabe Weissman 610-727-3696
gweissman@amerisourcebergen.com
Cardinal Health Investor
Contact: Kevin Moran 614-757-7942
kevin.moran@cardinalhealth.com
Media Contact: Erich Timmerman 847-887-1487
Erich.Timmerman@cardinalhealth.com
McKesson Investor Contact:
Holly Weiss 972-969-9174 Holly.Weiss@McKesson.com
Media Contact: David Matthews 214-952-0833
David.Matthews@McKesson.com
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