Three major opioid drug distributors and Johnson & Johnson (J&J) have agreed to a $26 billion settlement to tackle a large number of opioid lawsuits against companies across the nation.
Seven states of the U.S. unveiled the deal, and if more states and local governments approve the deal, then it will resolve a majority of opioid lawsuits against the distributors and J&J.
The settlement will include $5 billion from J&J and $21 billion from the distributors. $23.5 billion of the settlement amount will be used to combat the opioid crisis fueled by the distributors and J&J.
The breakup of the remaining $2.5 billion of the settlement amount will include $1.6 billion for private attorneys representing cities and counties. States hiring private attorneys will get $350 million, and the state attorney generals will be paid $350 million for handling in-house opioid litigation. The remaining amount of $200 million will be used for other legal expenditures.
The negotiators need to get the approval of the deal from almost all the states of the U.S. within 30 days once the framework of the deal is unveiled. Once a sufficient number of states have agreed with the deal, then the cities and counties will get 120 days to decide about participation in the deal.
If the negotiators fail to get support from a sufficient number of states, then the distributors will have the upper hand in the opioid litigation.
The distributors and J&J have been accused of fuelling the opioid crisis across the nation by implementing illicit marketing strategies to boost the sales of opioids and earn profits.
