By Jane Smith
(Reuters) – In a significant development, the three largest U.S. drug distributors have agreed to a $300 million settlement to resolve claims by health insurers and benefit plans related to their alleged role in the deadly U.S. opioid epidemic, as per court documents filed on Friday.
The proposed class action settlement with McKesson Corp, Cencora Inc, and Cardinal Health Inc was revealed in a filing in federal court in Cleveland, Ohio, pending approval from a judge.
These companies had previously agreed to a $21 billion settlement to address claims by state and local governments accusing them of inadequate controls that led to the diversion of large quantities of addictive painkillers into illegal channels.
Attorney Paul Geller, representing the plaintiffs, stated that the Friday deal specifically covers third-party payers such as union funds that bore the financial burden of overprescribed and overmarketed pills, as well as the necessary treatment for plan beneficiaries affected by opioid use disorder.
The distributors have not admitted any wrongdoing as part of the settlement. The $300 million will be distributed with McKesson paying 38.1%, Cardinal Health 30.9%, and Cencora (formerly AmerisourceBergen) 31%.
This case is one of many filed seeking accountability from drug makers, distributors, and pharmacies for their role in the drug addiction epidemic, which has led to hundreds of thousands of overdose deaths nationwide over the past two decades.
The ongoing litigation has resulted in settlements exceeding $50 billion, primarily with states and local governments.