Nate Raymond

(Reuters) –The U.S.’s three biggest drug distributors extended Wednesday the Jan. 2, deadline by which cities and counties could join a $21 billion settlement to resolve claims the firms fuelled the opioid crisis.

The deal was negotiated by the plaintiffs’ attorneys with McKesson Corp, AmerisourceBergen (NYSE) Corp and Cardinal Health Inc (NYSE 🙂 called the extension of three weeks a positive step that could allow some state and local governments who are still not signed on to do so. Jan. 26 is the new deadline.

Over 3,300 lawsuits, largely filed by the state and local governments, have been filed to hold opioid abusers and their companies accountable for the overdose crisis. This has led to thousands of deaths from overdoses over the last two decades. These companies denied wrongdoing.

In September, the distributors announced that Washington, D.C., and five other territories, along with 42 states, agreed to join the global settlement. A similar number backed a related $5 billion deal with Johnson & Johnson (NYSE:).

A total of $10.7 billion, or about $26 billion, is linked to the participation of cities, towns and counties. In recent weeks, local governments have been voting to join these claims and to settle them.

Peter Mougey (a plaintiffs lawyer) said that there was “huge support” and that almost 80% of the local governments involved in litigation would join him.

But Mougey, a partner at Levin Papantonio, and Paul Geller, a lead negotiator at plaintiffs’ law firm Robbins Geller Rudman & Dowd, said more time was needed to allow more states to join. Mougey indicated that New Mexico had signed the Dec. 7 agreement and more were in process.

Geller stated that a combination of other states joining the agreement and the natural effect of the holidays, which both have positive effects, led to parties agreeing on a brief extension. Geller said he expected a similar deadline extension for J&J, which had no comment.

AmerisourceBergen expressed optimism that other states and municipalities would sign up for the extension.