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States seek $26.4 billion from pharmaceutical distribution companies in opioid lawsuits

Trials set to begin in October are putting tension back on the major companies to engage with settlement talks

Published: August 18, 2020 11:31am

Updated: August 18, 2020 12:36pm

States are seeking nearly $26.5 billion from major U.S. pharmaceutical companies in the latest round of litigation pertaining to the years-long battle to hold the industry accountable for the devastating opioid crisis. 

Current litigation involves pharmaceutical distributors, which have caught much blame for allegedly failing to identify suspicious opioid orders that were redirected for irregular uses. According to the Wall Street Journal, more than 3,000 local governments, states, and Native American tribes have sued companies along the pharmaceutical supply chain for funneling an influx of opioids into their communities. 

The four major distribution companies include AmerisourceBergen Corp., Cardinal Health Inc., and McKesson Corp, which combined, distribute most of America's pharmaceutical drugs.

Johnson & Johnson, the manufacturer of some opioid painkillers, is also involved in current talks. 

According to federal data, at least 400,000 people have died in the United Since from overdoses of legal and illegal opioids since 1999. The litigation worth billions of dollars is seeking to reclaim communal costs like emergency service and foster services for children born to households of addiction. 

Thus far, only one case has gone to trial, resulting in a nearly half-billion dollar verdict against Johnson & Johnson in Oklahoma. Purdue Pharma LP, the maker of OxyContin, was driven into bankruptcy by pending suits, and several other companies have settled. 

Settlement negotiations between states and the four companies have been in development for many months, but have slowed down amid the coronavirus.

The delay of a major trial set to begin in March eased pressure on the companies to move forward with urgency. But, a new round of trial dates, set to begin in October, are again motivating the companies to seriously engage in the talks.

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