Risk Management

Deadline to join drug distributors’ opioid settlement extended

December 23, 2021 Reprints

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(Reuters) — The three largest U.S. drug distributors announced Wednesday an extension to a key Jan. 2 deadline for cities and counties to join a proposed $21 billion settlement resolving claims that the companies fueled the nation's opioid epidemic.

Plaintiffs lawyers who negotiated the deal with McKesson Corp., AmerisourceBergen Corp. and Cardinal Health Inc. called the three-week extension a positive development that would allow some holdout states and local governments to sign on. The new deadline is Jan. 26.

More than 3,300 lawsuits, largely by state and local governments, have been filed seeking to hold those and other companies responsible for an opioid abuse crisis that led to hundreds of thousands of overdose deaths over two decades. The companies deny wrongdoing.

The distributors said in September that 42 states, five territories and Washington D.C. had agreed to participate in the global settlement. A similar number backed a related $5 billion deal with Johnson & Johnson.

About $10.7 billion of the overall $26 billion is tied to the extent that cities, towns and counties participate, and local government councils have been voting in recent weeks to join and resolve their claims.

Paul Geller, a lead negotiator at plaintiffs law firm Robbins Geller Rudman & Dowd, said more time was needed to allow more states to join. He said he expected a similar deadline extension for J&J, which had no comment.

AmerisourceBergen said it “remains optimistic that additional states and municipalities will sign on during the extension beyond the original deadline.”