Cencora Directors Settle Opioid Oversight Case for $111M

Cencora Directors Settle Opioid Oversight Case for $111M

Introduction

Last Updated: October 3, 2025

Cencora has agreed to pay $111.3 million to settle a shareholder lawsuit accusing the company’s directors of failing to prevent the unlawful distribution of opioids during the height of the U.S. opioid epidemic. The agreement follows years of litigation and a recent mediation process.

Background of the Lawsuit

The case was originally filed in 2021 by the Lebanon County Employees’ Retirement Fund and a health plan managed by the Teamsters union. The plaintiffs alleged that Cencora’s board breached its fiduciary duties by not implementing proper oversight policies to curb illegal opioid distribution. According to the complaint, the company ignored evidence of widespread unlawful sales.

The Opioid Crisis Context

Since 1999, more than one million Americans have died from opioid overdoses, according to the CDC’s latest overdose data. with fatalities sharply increasing between 2017 and 2023 as access to powerful painkillers grew, the CDC reports. Cencora, formerly AmerisourceBergen, was among several major distributors implicated in fueling this crisis through lax compliance and inadequate safeguards.

Legal Journey and Case Revival

A Delaware judge dismissed the lawsuit in 2022, citing a West Virginia court ruling in Cencora’s favor, which “knocked the stuffing out of the plaintiffs’ claims.” However, the Delaware Supreme Court revived the case in 2023 after an appeal. Both parties later entered mediation, leading to the current settlement agreement.

Settlement Terms and Statements

The settlement, disclosed on Friday, states that the resolution is “fair, reasonable, and in the best interests of the company and its stockholders.” Cencora denies any wrongdoing or liability, emphasizing that the payment is intended to avoid prolonged litigation and related costs.   
In a statement, a company spokesperson reiterated that the settlement does not include any admission of misconduct.

Cencora’s Broader Opioid Liability

This settlement adds to the company’s mounting financial obligations tied to opioid litigation. In 2022, Cencora agreed to pay $6.4 billion over 18 years as part of a nationwide settlement resolving most government lawsuits. Additional suits from insurers and benefit plans have led to smaller settlements, including a $300 million deal reached last fall with other distributors.

In addition to opioid-related settlements, Cencora recently agreed to a $40 million class action settlement over a 2023 data breach impacting thousands of patients. Read more about the Cencora data breach case →

Industry-Wide Accountability

Cencora’s case is part of a larger wave of litigation targeting drug distributors, manufacturers, pharmacies, and prescribers for their role in the opioid epidemic. To date, these lawsuits have collectively resulted in approximately $50 billion in settlements, as efforts to hold companies accountable continue.

What Happens Next in the Cencora Lawsuit?

While the $111M settlement is pending court approval, additional suits against Cencora from insurers and benefit plans may progress. Updates are expected in late Q4 2025. Bookmark this page for real-time developments.