$18B Opioids Settlement Offer Rejected By 21 U.S. States

Introduction

Attorney generals in 21 U.S. states rejected an offer of $18 billion from Mckesson Corp. and other opioid distributors, as the states consider the fine to be less compared to the opioid crisis caused because of them.

McKesson, AmerisourceBergen, and Cardinal Health are the three major companies involved in the deal. The companies have lawsuits filed against them by at least 30 states, out of which some want to strike a deal between $22 billion to $32 billion.

County and city governments have filed the majority of lawsuits against the drug industry, which are consolidated in the Cleveland federal court. The lawsuits allege the companies, manufacturers, and distributors of misguided marketing, which resulted in the opioid crisis throughout the nation.

Opioid addiction in Northeast Ohio became the cause of death for thousands of deaths. The death rate was due to the high use of heroin, fentanyl, and other painkillers. The lawsuits also state that the huge amount of pills dumped in the market increase the addiction to these painkillers, as people chose cheaper heroin on the streets over prescription painkillers.

A case for the opioid crisis that began in 2014 was the first in history where local government entities sued Big Pharma for causing painkiller addiction. The case brought by Oklahoma in 2019 was the first to go for trial where Johnson & Johnson was ordered to pay $572 million in an opioid lawsuit. Later, the verdict was reduced to $465 million, for which the appeal is still pending.

Federal health officials warned that opioids account for nearly 70% of all drug overdoses. 3,100 deaths were accounted for due to opioid overdoses in 2013 and the number has surpassed 36,000 by 2019.

Meanwhile, on Friday, Arizona, Indiana, Michigan, and nine other states along with the District of Columbia filed an amicus brief, asking the appeals court to put an end to Ohio federal judge's September certification of the negotiation class designed to help resolve the multidistrict opioid litigation.

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