Drug companies avert landmark opioids trial as talks on $48 bln settlement set to resume

CLEVELAND, (Reuters) - Four large drug companies could resume talks yesterday to try to reach a $48 billion settlement of all opioid litigation against them, after agreeing with two Ohio counties to a $260 million deal to avert the first federal trial over their role in the U.S. opioid epidemic.

Drug distributors Amerisource-Bergen Corp, Cardinal Health Inc and McKesson Corp and drugmaker Teva Pharmaceutical Industries Ltd agreed to the deal that removed the immediate threat of a trial that was to begin on Monday in Cleveland.

The parties could resume talks as soon as Tuesday aimed at a broader settlement of thousands of opioid lawsuits brought by states and local governments, according to Paul Hanly, an attorney for the towns and counties.

Under Monday’s local settlement, the distributors, which handle around 90% of

U.S. prescription drugs, will pay a combined $215 million immediately to Ohio’s Cuyahoga and Summit counties that were plaintiffs in Monday’s trial.

Israel-based Teva said it was paying $20 million in cash and will contribute $25 million worth of Suboxone, an opioid addiction treatment.

Teva, the world’s largest maker of generic drugs, said it will make its contribution over three years.

The companies have been accused of fueling a nationwide opioid crisis. Some 400,000 U.S. overdose deaths between 1997 and 2017 were linked to opioids, according to government data.

“While the companies strongly dispute the allegations made by the two counties, they believe settling the bellwether trial is an important stepping stone to achieving a global resolution,” the distributors said in a joint statement.