Three of the largest drug distributors in the United States, McKesson Corp, Cencora Inc, and Cardinal Health Inc, have reached a $300 million settlement to resolve claims brought against them by health insurers and benefit plans. These claims stem from the distributors’ alleged role in fueling the ongoing opioid epidemic.
The settlement, proposed in a federal court in Cleveland, Ohio, requires a judge’s approval. It comes as a continuation of the legal battles surrounding the opioid crisis, with the same companies having previously agreed to a $21 billion settlement with state and local governments.
The accusations against the distributors center around their failure to implement adequate controls, which allowed substantial quantities of highly addictive painkillers to be diverted into illegal markets. This settlement specifically addresses the claims of third-party payers, such as union funds, who faced the financial burden associated with overprescribed and overmarketed opioid medications, along with the subsequent costs of treating opioid use disorder.
While the distributors have agreed to the settlement, they have not admitted any wrongdoing. The $300 million payment will be divided amongst the companies, with McKesson contributing 38.1%, Cardinal Health contributing 30.9%, and Cencora contributing 31%.
This case is part of a wider wave of litigation targeting drug manufacturers, distributors, and pharmacies, aiming to hold them accountable for the nationwide opioid crisis that has tragically resulted in hundreds of thousands of deaths over the past two decades. These lawsuits have collectively generated over $50 billion in settlements, primarily with state and local governments.
