90 Percent of Eligible Local Governments Join $ 26 Billion Opioid Settlement By Sara Stephens
It looks like a $ 26 billion proposed settlement could move full steam ahead after 90 % of 6,000 U . S . cities and counties gave their nod of approval , Reuters reported . The deal would resolve local governments ’ lawsuits alleging that top drug distributors Johnson & Johnson , McKesson Corp ., AmerisourceBergen Corp ., and Cardinal Health Inc . powered the nation ’ s opioid epidemic .
Plaintiffs ’ lawyer Peter Mougey , a partner at Levin Papantonio Rafferty , told Reuters that the local governments across 45 states and territories had responded in overwhelming numbers to the late January deadline for opting into the proposed settlement .
Of the responding states , New Hampshire stood alone in its decision to reject settlement offers from defendants . Despite having settled with distributors , the state is still suing J & J to the tune of billions of dollars .
Mougey expressed his astonishment at this level of participation in the opioid settlement . “ It demonstrates the strength and power of this settlement ,” the attorney told Reuters .
Governments plan to use the settlement money to fund programs and treatment for an opioid abuse epidemic the defendants allegedly fueled . Of the possibly $ 26 billion , distributors have said they will pay $ 21 billion . Johnson & Johnson has agreed to pay as much as $ 5 billion . Participation of local governments would eat up around $ 10.7 billion .
Mougey reported that by the date of the opt-in deadline :
• 3,010 local governments who had filed lawsuits against distributors agreed to settle with these defendants .
• 3,405 governments ( 10,000 + population ) not involved in such lawsuits also agreed to settle with distributors .
• 3,038 local governments that are pursuing actions against J & J agreed to the settlement .
• 3,324 non-litigating local governments also joined the deal .
It ’ s now the defendants ’ turn to commit . They must decide if they are moving ahead with the deal by February 25 , 2022 .
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