Tablets of the opioid-based Hydrocodone were sold at a pharmacy in Portsmouth, Ohio on June 21, 2017. Jan 25, Reuters- Rhode Island reversed course and threw its support behind a $21 billion settlement that it originally declined to back resolving lawsuits alleging three large drug distributors fueled the deadly U.S. opioid epidemic.
Rhode Island Attorney General Peter Neronha announced that he was the latest instance of a holdout state opting to settle with big three drug distributors McKesson Corp MCK.N AmerisourceBergen Corp ABC.N and Cardinal Health Inc CAH.N.
Cities and counties in states that have agreed to settle their differences will have a Wednesday deadline to join the distributors' settlement and a $5 billion agreement with Johnson Johnson, according to a $5 billion agreement. How much litigation the companies will have to face depends on state and local government participation, according to JNJ.N. The deadline was extended as more states opted to settle.
Rhode Island will receive $90.8 million over the course of 18 years from the distributors, under an agreement that the state said ensures it receives money regardless of whether the global settlement proceeds.
AmerisourceBergen said it was pleased to see the increased commitment to participation in the global settlement process. Cardinal Health did not make a statement. McKesson didn't respond to requests for comment.
More than 3,300 lawsuits, largely by state and local governments, are pending seeking to hold those and other companies responsible for the opioid abuse crisis that resulted in hundreds of thousands of overdose deaths in the United States. The companies deny wrongdoing.
Rhode Island had previously agreed to settle with J&J but not the distributors.
The number of states that have not agreed to settle with some or all of the four companies has dwindled from nine in September to five, including Washington, which has taken the distributors to trial.
New Hampshire settled with distributors but not J&J. A trial in that case was set for next week but was delayed due to the COVID 19 pandemic.