Major Drug Distributors Reach $300 Million Settlement Over Opioid Crisis

The three largest drug distributors in the U.S. have agreed to a $300 million settlement to resolve claims from health insurers and benefit plans related to the opioid epidemic, as outlined in court documents filed on August 30.

McKesson, Cencora (formerly AmerisourceBergen), and Cardinal Health have reached this proposed class action settlement, pending judicial approval, in federal court in Cleveland, Ohio. This settlement follows their earlier agreement to pay $21 billion to state and local governments over allegations of inadequate controls that contributed to the illegal diversion of opioids.

Paul Geller, a lawyer representing the plaintiffs, noted that this settlement addresses claims by third-party payers, including union funds, which covered expenses for overprescribed opioids and related treatments for opioid use disorder.

The $300 million settlement will be divided among the distributors as follows: McKesson will pay 38.1%, Cardinal Health 30.9%, and Cencora 31%. Despite this settlement, the distributors do not admit to any wrongdoing.

This case is part of a broader wave of litigation seeking accountability for the opioid crisis, which has resulted in over $50 billion in settlements with various drug manufacturers, distributors, and pharmacies.