Companies strike 11th-hour deal

Drug companies strike 11th-hour deal to avoid major opioid trial

By SUSANNAH LUTHI

Major drug companies reached a late-breaking settlement with two Ohio counties over their alleged role in the opioid epidemic hours before the first federal trial was set to begin today.

Three firms controlling most of the U.S. drug supply — AmerisourceBergen, Cardinal Health and McKesson — as well as Teva Pharmaceutical Industries and Walgreens will avoid the high-profile trial, which had been seen as a bellwether for how the courts will treat thousands of similar lawsuits from cities, states, hospitals and Native American tribes. However, the settlement does not resolve those remaining lawsuits, many of which are being overseen by a federal judge in Cleveland.

“Thousands of American communities still have claims against opioid industry defendants,” attorneys representing the localities said in a statement.

The settlement with Ohio’s Cuyahoga and Summit counties is for $260 million. The details are expected to be announced later today.

U.S. District Court Judge Dan Polster, who is supervising most of the consolidated litigation, announced from the bench Monday morning that the trial will not move forward, a court representative confirmed.

Walgreens, the major drug retailer, is the only company that has not yet settled with the two counties. A small medical supply company that was also named in the counties' lawsuit this morning said it had agreed to pay a $1.25 million settlement.