Three big distributors, drugmaker reach $260 million deal to resolve opioids lawsuit

Settlement seen as test case that could influence any nationwide accord

Cleveland — The nation’s three biggest drug distributors and a major drugmaker reached a $260 million settlement with two Ohio counties Monday over the deadly havoc wreaked by opioids, striking a deal just hours before they were about to face a jury at the start of the first federal trial over the crisis.

The settlement means the closely watched trial is off for now.

The trial involved only two counties — Cleveland’s Cuyahoga County and Akron’s Summit County — but was seen as an important test case that could gauge the strength of the opposing sides’ arguments and prod them toward a nationwide settlement.

Across the country, the drug industry is facing more than 2,600 lawsuits brought by state and local governments seeking to hold it accountable for the crisis that has been linked to more than 400,000 deaths in the U.S. over the past two decades. A federal judge in Ohio has been pushing the parties toward a settlement of all the lawsuits.

The agreement announced Monday calls for the 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.

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 settlement, because every partial settlement reached reduces the amount of money the companies have available to pay other plaintiffs.

After the new settlements and previous ones with other drugmakers, the only defendant left in the trial that had been scheduled for Monday is the pharmacy chain Walgreens. The new plan is for Walgreens and other pharmacies to go to trial within six months.

Monday’s settlement removes the risks and uncertainties involved in a trial for both sides: The counties immediately lock in money they can use to deal with the crisis, and the drug companies avoid a possible finding of wrongdoing and a huge jury verdict.

“I have to say a day in court is always a good thing, but it doesn’t always get you where you need to go, or as fast as you need to go there,” Summit County Executive Ilene Shapiro said.

It also means that the evidence prepared for the trial won’t be fully aired.