U.S. Drug Distributors to Pay $300 Million in Opioid Settlement

Three major U.S. drug distributors have agreed to a $300 million settlement to resolve health insurer and benefit plan claims related to the opioid epidemic. This settlement awaits federal court approval. Without admitting wrongdoing, the companies will distribute payments proportionally.

Three of the largest U.S. drug distributors have reached a $300 million settlement to resolve claims from health insurers and benefit plans alleging the companies contributed to the deadly opioid epidemic, according to court documents filed Friday.

The settlement with McKesson Corp, Cencora Inc, and Cardinal Health Inc must receive a judge's approval in federal court in Cleveland, Ohio. This follows a previous $21 billion settlement with state and local governments who accused the companies of lax controls that enabled the widespread diversion of addictive painkillers into illegal markets.

According to Paul Geller, a lawyer for the plaintiffs, the new deal covers third-party payers like union funds that financed the overprescribed and overmarketed opioids, and the subsequent treatment of opioid use disorder among their beneficiaries.

Despite not admitting any liability, McKesson will pay 38.1% of the settlement, Cardinal Health 30.9%, and Cencora, formerly AmerisourceBergen, 31%. This case is among thousands filed to hold drug manufacturers, distributors, and pharmacies accountable for the opioid addiction crisis that has caused hundreds of thousands of overdose deaths nationwide over the past 20 years. Overall, the litigation has resulted in more than $50 billion in settlements, primarily with states and local governments.

(With inputs from agencies.)