Nate Raymond

BOSTON (Reuters) – U.S. cities and counties have embraced a proposed settlement worth up to $26 billion resolving lawsuits alleging three large drug distributors and drugmaker Johnson & Johnson (NYSE:) fueled the U.S. opioid epidemic, a lead negotiator of the deal said on Wednesday, increasing the odds that it will move forward.

90% of eligible local governments across the country were eligible to join the settlement with McKesson Corp. (NYSE:), AmerisourceBergen. (NYSE:) Corp. Cardinal Health Inc (NYSE:) and J&J had opted to do so by a Wednesday deadline, said Peter Mougey, a plaintiffs’ lawyer involved in the negotiations.

These counties and municipalities are in 45 US states as well several Territories that previously agreed to settle with distributors following the July announcement of the settlement.

Forty-four states have agreed to settle with J&J. New Hampshire settled with the distributors but opted to keep pursuing a multibillion-dollar lawsuit against J&J.

Mougey explained that it was unprecedented to get 6 000 cities and counties on the same page in just 90 days. It is a testament to the power and strength of this settlement.

J&J in a statement said it is evaluating the level of participation by eligible local governments. They did not reply to our requests for comment.

This agreement will end thousands of state and local lawsuits and any future suits they might bring against the companies in an attempt to hold them responsible for opioid abuse that caused overdose deaths of hundreds of thousands.

It is intended to primarily fund government programs and treatment to deal with the current health crisis.

The amount of $26 billion that companies pay will depend on the participation of local and state governments. Local government participation was responsible for $10.7 billion.

The two companies will have to determine whether sufficient localities are willing to join the agreement by February 25th.

Mougey, who is a partner in the law firm Levin Papantonio said that 3,010 local governments that were suing distributors had reached an agreement to settle by Wednesday. This was along with 3,405 other municipalities with over 10,000 people that have not yet filed a suit.

He said 3,038 local governments that sued J&J opted into the deal along with 3,324 non-litigating ones.

Five states refused to settle with any of the companies. Washington, for example, is currently in a trial trying to collect $95 million from the distributors.