Six U.S. states do not join $ 26 billion opioid settlements with distributors, J&J

August 23 (Reuters) – At least six US states, including Georgia, have not fully signed a $ 26 billion proposal with three drug dealers and Johnson & Johnson (JNJ.N), who have been accused of having fueled the nation’s opioid epidemic. , according to state attorneys general.

The states had until Saturday to decide whether to support the proposed $ 21 billion deal with McKesson Corp (MCK.N), AmerisourceBergen Corp (ABC.N) and Cardinal Health Inc (CAH.N) and a separate deal. $ 5 billion with J&J.

But in a sign that talks were continuing despite the deadline being approved, Georgia, the most populous retention state, said Monday it could end up supporting the deal.

“We have not rejected the agreement, but we have not joined it because, at this time, joining the national settlements does not guarantee the best outcome for Georgia and its counties, cities and citizens,” a statement said in the mail. electronic from the Attorney General, Christopher Carr. “We remain active in representing Georgia during the negotiations and will continue to obtain input from Georgia stakeholders.”

The state will litigate its claims if necessary, according to the statement.

New Mexico, Oklahoma, Washington and West Virginia also refused to join the agreements, prosecutors said. New Hampshire agreed the deal with the dealers, but not the J&J deal.

The complex settlement formula envisages the participation of at least 44 states, but ultimately companies can decide whether to join a “critical mass” and end the deal.

The size of the settlement is based on the number of participating states. Those who refuse to join will seek greater recovery by continuing to fight defendants in the courts. Companies have already paid hundreds of millions in verdicts and other deals. Read more

The deal, which was filed by 14 state attorneys general on July 21, aims to resolve more than 3,000 lawsuits accusing distributors of ignoring the red flags that the pain pills were on. diverting communities to illicit uses and that J&J minimized the risks of opioid addiction. .

The money would be used to fund treatment and other services.

The companies deny the wrongdoing, saying the drugs were approved by the U.S. Food and Drug Administration and that responsibility for painkiller sales is the responsibility of others, including doctors and regulators.

McKesson said companies have until Sept. 4 to determine if there is enough support for the agreements and said the process is ongoing. Cardinal Health and AmerisourceBergen declined to comment and J&J did not immediately respond to a request for comment.

According to sources familiar with the situation, the support of two other states, Nevada and Alabama, also seemed to be in doubt.

The Nevada Attorney General declined to comment and the Alabama Attorney General did not respond to a request for comment.

The participation of states is closely linked to that of their local governments, which brought most of the demands. The cities and counties of the participating states should sign in by January 2nd. Ultimately, $ 10.7 billion of the established money is related to the extent to which localities participate.

North Carolina Attorney General Josh Stein, the chief negotiator, said last month that he hoped it would join “well north” of 40 states.

Reports of Nate Raymond in Boston and Tom Hals in Wilmington, Delaware; Editing by Noeleen Walder and Karishma Singh

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