Stock Groups

Opioid distributors reach $518 million settlement with Washington state -Breaking

[ad_1]

© Reuters. FILE PHOTO – Hydrocodone tablets at Portsmouth Pharmacy, Ohio on June 21st 2017. REUTERS/Bryan Woolston/File photo

By Dietrich Knauth

(Reuters) – Washington agreed to a $518million settlement with AmerisourceBergen, McKesson Corp (NYSE 🙂 and AmerisourceBergen Corp (NYSE 🙂 Cardinal Health (NYSE:). The end of a long-running trial over the potential role of these companies in fueling the state’s opioid epidemic was announced by the three companies on Tuesday.

McKesson will be paid $197 million while Cardinal and AmerisourceBergen will each receive $160.5 million.

Washington opted out of a $26 billion nationwide opioid settlement involving the three drug distributors and Johnson & Johnson (NYSE:). Under the settlement that was completed in February, it would have been eligible for $417.9 millions from McKesson and Cardinal Health.

In a press release, Washington Attorney General Bob Ferguson stated that the settlement was one of Washington’s largest ever.

Ferguson stated that “We could have joined with the vast majority of states to settle with opioid distributors. But we decided to fight them in the courtroom.” Washington’s decision to bring them before the courtroom will provide significant extra resources to tackle the opioid crisis.The state accused drug distributors of not preventing prescription pills being illegally diverted during the trial that began November in Seattle before King County Superior Court Judge Michael Scott. Washington sought $38.2Billion to pay for treatment.

According to the distributors who have denied any wrongdoing they said that settlement would offer meaningful relief to the communities in America affected by the opioid crisis.

The U.S. Centers for Disease Control and Prevention estimates that opioid overdoses led to over 500,000 deaths over the past 20 years.

Along with Alabama, Oklahoma and other states, Washington was one of a few to withdraw from the $26 billion national opioid agreement. New Hampshire settled with the three drug distributors but not J&J, while West Virginia was not part of the national agreement because of a prior settlement between the state and the three drug distributors.

Alabama recently reached a separate $276 million settlement with McKesson,J&J and Endo International (NASDAQ:) Plc on April 18, avoiding a trial that was set to proceed against McKesson that day.

West Virginia settled the state’s opioid claims against J&J for $99 million on April 20. West Virginia counties still pursue litigation against McKesson AmerisourceBergen Cardinal Health, and McKesson.

Florida and West Virginia currently have opioid trial against other defendants. Florida is suing Walgreens Boots Alliance for breach of contract (NASDAQ:), and West Virginia is suing Teva Pharmaceutical Industries Ltd. (NYSE.) Ltd., as well AbbVie Corporation (NYSE.)’s Allergan.

[ad_2]