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West Virginia Reaches $400 Million Opioid Deal with Distributors

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Bob Fitzsimmons, left, and Paul Farrell, attorneys for the plaintiffs, discussed the settlement in Charleston, W.Va., on Monday.



Photo:

Kenny Kemp/Associated Press

West Virginia has reached a $400 million settlement with drug distributors

McKesson Corp.

MCK -1.48%

,

AmerisourceBergen Corp.

ABC -1.41%

and

Cardinal Health Inc.,

CAH -0.94%

over allegations that the companies fueled the opioid epidemic in the state and created a health crisis.

The settlement, reached Monday, is the latest in a wave of others over the past year, including one in which the three distributors and drug company

Johnson & Johnson

JNJ 0.04%

agreed to pay roughly $25 billion to resolve litigation brought by states. West Virginia had chosen not to participate in that earlier settlement.

The $400 million settlement will be distributed over 12 years to more than 100 counties and cities in West Virginia. Bob Fitzsimmons, one of the lead attorneys for the plaintiffs, said the counties and cities will receive roughly double the amount they would have gotten if they hadn’t pursued separate litigation with the three distributors.

“We can’t bring people back. We can’t reverse addictions that have occurred in the past. But going forward if we can save one person and one family it’s beneficial,” he said.

AmerisourceBergen said the settlement would avoid years of litigation while providing resources to communities affected by the opioid epidemic. Cardinal Health said in a statement that it is committed to being a part of the solution to the opioid epidemic and that it believes the settlement “will help provide necessary relief to West Virginia communities in need.” A representative for McKesson didn’t immediately respond to a request for comment.

Cabell County and the city of Huntingdon, W.Va., will participate in a portion of the settlement that will go toward treatment programs but not in a smaller portion that goes directly to counties. Cabell County and the city had sued the three drug distributors separately, alleging that the companies had created a public nuisance by fueling the opioid epidemic.

Last month, a federal judge ruled in favor of the companies and said they couldn’t be held liable for creating the opioid crisis in the West Virginia county and city.

Write to Kris Maher at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8


Bob Fitzsimmons, left, and Paul Farrell, attorneys for the plaintiffs, discussed the settlement in Charleston, W.Va., on Monday.



Photo:

Kenny Kemp/Associated Press

West Virginia has reached a $400 million settlement with drug distributors

McKesson Corp.

MCK -1.48%

,

AmerisourceBergen Corp.

ABC -1.41%

and

Cardinal Health Inc.,

CAH -0.94%

over allegations that the companies fueled the opioid epidemic in the state and created a health crisis.

The settlement, reached Monday, is the latest in a wave of others over the past year, including one in which the three distributors and drug company

Johnson & Johnson

JNJ 0.04%

agreed to pay roughly $25 billion to resolve litigation brought by states. West Virginia had chosen not to participate in that earlier settlement.

The $400 million settlement will be distributed over 12 years to more than 100 counties and cities in West Virginia. Bob Fitzsimmons, one of the lead attorneys for the plaintiffs, said the counties and cities will receive roughly double the amount they would have gotten if they hadn’t pursued separate litigation with the three distributors.

“We can’t bring people back. We can’t reverse addictions that have occurred in the past. But going forward if we can save one person and one family it’s beneficial,” he said.

AmerisourceBergen said the settlement would avoid years of litigation while providing resources to communities affected by the opioid epidemic. Cardinal Health said in a statement that it is committed to being a part of the solution to the opioid epidemic and that it believes the settlement “will help provide necessary relief to West Virginia communities in need.” A representative for McKesson didn’t immediately respond to a request for comment.

Cabell County and the city of Huntingdon, W.Va., will participate in a portion of the settlement that will go toward treatment programs but not in a smaller portion that goes directly to counties. Cabell County and the city had sued the three drug distributors separately, alleging that the companies had created a public nuisance by fueling the opioid epidemic.

Last month, a federal judge ruled in favor of the companies and said they couldn’t be held liable for creating the opioid crisis in the West Virginia county and city.

Write to Kris Maher at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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