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The company said that “enough” US states have joined a settlement agreement that resolves their allegations of contributing to the opioid epidemic, allowing it to move on.
The three major U.S. drug distributors and drugmaker Johnson & Johnson will enter into a proposed $26 billion settlement agreement to resolve the claims they are fueling The opioid epidemic The two companies said on Saturday that after “enough” states have joined.
The two companies must decide before Saturday whether there are enough states to support the $21 billion settlement agreement with McKesson Corp, AmerisourceBergen Corp and Cardinal Health Inc and the $5 billion agreement with Johnson & Johnson.
Distributors said that 42 states, five regions and Washington, DC have signed their agreements. The exact number of Johnson & Johnson-related transactions is unclear.
The distributor stated that the two companies will deposit the first annual settlement payment in escrow on or before September 30. They added that the final amount will depend on several factors, including the final participation rate of each state and political division.
North Carolina Attorney General Josh Stein, the chief settlement negotiator, described this level of support as a “significant manifestation of unity and commitment across the country to resolve this issue.”
The complex formula of the settlement agreement envisages at least 44 states participating, but ultimately the company must decide whether to have “critical mass” to join and whether to complete the transaction.
Eight states have previously stated that they have not fully signed before the August 21 deadline: Alabama, Georgia, Nevada, New Mexico, Oklahoma, Washington and West Virginia.
Cities and counties in participating states must also join before January 2. In the end, 10.7 billion USD was related to the level of local participation.
tradeIt was announced on July 21 by 14 state attorneys general to resolve more than 3,000 lawsuits accusing distributors of ignoring red flags that painkillers were transferred to communities for illegal use and Johnson & Johnson downplayed the risk of opioid addiction.
The money will be used to fund treatment and other services.
The two companies denied wrongdoing, saying that these drugs have been approved by the U.S. Food and Drug Administration and that the responsibility for the surge in sales of painkillers lies with doctors, regulatory agencies and others.
The transaction is independent of the settlement agreement to resolve similar claims against OxyContin manufacturer Purdue Pharma LP and its wealthy individuals. Sackler family ownersOn Wednesday, a bankruptcy judge approved the transaction, and Purdue University is valued at more than $10 billion.
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