McKesson, Cardinal, Cencora to pay $300M settlement over role in opioid epidemic

McKesson opioid settlement overview:

• Who: McKesson Corp., Cencora Inc. and Cardinal Health have reached a $300 million class action settlement.
• Why: The McKesson settlement will resolve claims from health insurers and benefit plans over the drug distributors’ alleged role in the opioid crisis.
• Where: The opioid class action lawsuit was filed in Ohio federal court.

Three of the country’s largest drug distributors have reached a $300 million class action settlement over allegations they contributed to the opioid crisis, Reuters reports.

McKesson Corp., Cencora Inc. and Cardinal Health deny any wrongdoing but agreed to settle the McKesson opioid class action lawsuit to escape claims from health insurance companies and benefit plans over the drug companies’ alleged failure to regulate the amount of opioid painkillers to be sold through illegal channels.

Paul Geller, one of the plaintiffs’ lawyers, said the McKesson settlement covered third-party payers that “largely paid for the overprescribed and overmarketed pills and for the treatment required when their plan beneficiaries inevitably suffered opioid use disorder.”

The proposed settlement class includes insurance companies and benefit plans that paid for or were reimbursed for prescription opioid drugs manufactured or distributed by the defendants and/or that incurred costs for treatment related to misuse, addiction and/or overdose of opioid drugs since Jan. 1, 1996.

McKesson will pay approximately 38% of the $300 million McKesson settlement amount, while Cardinal and Cenora will pay about 31%.

The plaintiffs have asked an Ohio federal judge to preliminarily approve the McKesson opioid settlement.

McKesson settlement part of effort to seek accountability for opioid crisis

Thousands of opioid lawsuits have been filed with the goal of holding drug manufacturers, distributors and pharmacies accountable for fueling the opioid crisis and hundreds of thousands of opioid overdoses in the United States over the last two decades.

More than $50 billion in settlements have been reached to date. Most of the opioid settlements have been reached with states and local governments.

Hikma Pharmaceuticals recently agreed to pay $150 million to escape allegations it failed to report suspicious opioid orders made by potentially illegal distributors. A California federal judge also recently approved a $78 million settlement over allegations McKinsey and Co. deceptively advertised its opioid prescription drugs.

What do you think about the McKesson settlement agreement? Join the discussion in the comments.

The plaintiffs are represented by Paul J. Geller and Mark J. Dearman of Robbins Geller Rudman & Dowd LLP; Elizabeth J. Cabraser and Eric B. Fastiff of Lieff Cabraser Heimann & Bernstein LLP; Peter H. Weinberger of Spangenberg Shibley & Liber; Jayne Conroy of Simmons Hanly Conroy; Joseph F. Rice of Motley Rice; and Paul T. Farrell Jr. of Farrell & Fuller LLC.

The McKesson opioid settlement is In re: National Prescription Opiate Litigation, Case No. 1:17-md-02804-DAP, in the U.S. District Court for the Northern District of Ohio, Eastern Division.

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