Ohio nearing $808M opioid settlement deal with distributors
The state of Ohio took a major step forward this week in reaching a massive settlement deal with distributors sued over their role in the opioid epidemic.
The “Oneohio” opioid settlement now has been agreed to by at least 96% of litigating local governments – 142 of the 143 entities said yes as of Wednesday – the absolute minimum for any deal to be considered.
“This overwhelming level of support from local leaders is a victory for collaboration and communication statewide,” Ohio Attorney General Dave Yost said in a statement. “Communities across Ohio are clearly seeing that we’re in this together; they know it’s a time for ‘we,’ not ‘me.’ “
The only holdout, Scioto County, can still sign onto the deal until this Friday at 5 p.m. The 95% mark, while necessary, does not guarantee that the distributors will be paying out $808 million. The companies still need to sign off on it.
If the distributors – Dublin-based Cardinal Health; Mckesson, based in Texas; and Amerisourcebergen, of Pennsylvania – do give approval, roughly 30% of the money would go to local communities, which then would be used for treatment and prevention programs for opioid addiction. Another 15% would go to Ohio for legal costs, and
the rest would go to a foundation controlled by local government representatives.
A settlement is expected to be formally reached but there is not yet a timeline, said the attorney general’s office.
Ohio is among states involved in years-long, nationwide opioid litigation in the federal courts against the distributors and manufacturers of opioids. The proposed settlement with the big three stems from investigations into whether the distributors fulfilled their legal duty to refuse to ship opioids to pharmacies that submitted suspicious drug orders. More than 23,700 Ohioans died from 2010-2019 as a result of opioid overdoses, according to Yost’s office.
Under the Ohio settlement, funds would be distributed and split between localities based on the number of overdose deaths, addiction rates and other factors.
“There’s no admission of wrongdoing on part of the companies, but the checks that they’re writing are substantial,” the attorney general previously said.
It comes after too few counties and cities had signed onto the settlement deal by the initial deadline of Aug. 13. Yost extended the deadline and published a list of who was in the deal or not, and that seemed to have work.
In central Ohio, both Franklin County and the city of Columbus had already announced they would join in on the settlement.
In northeast Ohio, Akron signed on after the initial deadline. North Canton and the Canton township have signaled they’re joining, too.
Down in southwest Ohio, Hamilton County is part of the deal. But Cincinnati was the second-to-last holdout as of early Wednesday. That changed later in the day, with the city council sidestepping the mayor’s concerns to join in.
Mayor John Cranley expressed dismay with the settlement proposal and wanted the city to litigate its own claims.
“It’s far too little money and accountability. We think this is a bad deal,” said Cranley, who is a Democratic candidate for governor.
If Cincinnati had opted out, that would have had a major impact on the deal. More than $70 million would be at stake because of it, said the attorney general’s office.
“The difference in financial incentives from 97% to 99% of the population for litigating political subdivisions is real, meaningful money that can abate the opioid crisis in our state,” said Bethany Mccorkle, the attorney general’s spokesperson. “The settlement is stronger if everyone acts together.”
If the distributors back out of the settlement deal, a trial will proceed on Sept. 20.
Titus Wu is a reporter for the USA TODAY Network Ohio Bureau, which serves the Columbus Dispatch, Cincinnati Enquirer, Akron Beacon Journal and 18 other affiliated news organizations across Ohio.