In a significant move to address the opioid epidemic, three major U.S. drug distributors—McKesson Corp, Cencora Inc, and Cardinal Health Inc—have reached a $300 million settlement with health insurers and benefit plans. This settlement is intended to resolve allegations that these companies contributed to the crisis by failing to control the distribution of addictive painkillers.
The agreement, filed in federal court in Cleveland, Ohio, is still pending judicial approval. This deal follows their previous $21 billion settlement with state and local governments, which accused them of inadequate controls that facilitated the illegal diversion of opioids.
Plaintiffs’ lawyer Paul Geller highlighted that the new settlement addresses the financial burdens faced by third-party payers, such as union funds, which covered the costs of overprescribed opioids and subsequent treatments for those affected by opioid use disorder.
Under the terms of the settlement, McKesson will contribute 38.1% of the total amount, Cardinal Health will pay 30.9%, and Cencora, formerly AmerisourceBergen, will cover 31%. While the distributors deny any wrongdoing, this settlement forms part of the broader effort to resolve thousands of lawsuits related to the opioid epidemic, which has led to over $50 billion in settlements nationwide.
