$260M deal in opioids case

Settlement averts first federal trial on the national crisis

CLEVELAND — The nation’s three biggest drug distributors and a major drugmaker agreed to an 11th-hour, $260 million settlement Monday over the deadly toll taken by opioids in two Ohio counties, averting what would have been the first federal trial over the crisis.

Across the U.S., the pharmaceutical industry still faces more than 2,600 other lawsuits over the deadly disaster, and participants in those cases said the latest deal buys them time to try to work out a nationwide settlement of all claims.

Monday’s deal was struck in the middle of the night, just hours before a jury that was selected last week was scheduled to hear opening arguments.

The trial involved only two counties but was seen as an important test case that could have gauged the strength of the opposing sides’ arguments and prodded them toward a nationwide settlement.

The new agreement calls for the drug distributors AmerisourceBergen, Cardinal Health and McKesson to pay a combined $215 million, said Hunter Shkolnik, a lawyer for Cuyahoga County.

Israeli-based drugmaker Teva would contribute $20 million in cash and $25 million worth of Suboxone, a drug used to treat opioid addiction.

“People can’t lose sight of the fact that the counties got a very good deal for themselves, but we also set an important national benchmark for the others,” Shkolnik said.

The deal contains no admission of wrongdoing by the defendants, said Joe Rice, a lead plaintiffs’ lawyer.

But it could turn up the pressure on all sides to work out a nationwide deal.

Across the country, drug manufacturers, suppliers and sellers face a barrage of lawsuits brought by state and local governments, Native American tribes, hospitals and others over the opioid crisis, which is blamed for more than 400,000 deaths in the U.S. over two decades. For nearly two years, a federal judge in Ohio has been pushing the parties toward a settlement.