On July 20, 2021 AmerisourceBergen (NYSE: ABC), Cardinal Health (NYSE: CAH) and McKesson (NYSE: MCK) reported that they have agreed to pay up to $1.179 billion in a settlement with the State of New York and its participating subdivisions, including Nassau and Suffolk Counties, to resolve opioid-related claims (Press release, Cardinal Health, JUL 20, 2021, View Source [SID1234584967]). This settlement was negotiated in connection with the ongoing negotiations toward a broad resolution under the previously disclosed settlement framework intended to resolve claims brought by other states, counties and other political subdivisions. The companies view today’s settlement as an important step toward finalizing a broad settlement with states, counties, and political subdivisions. If the broad settlement is reached, New York and its participating subdivisions will become part of that broader agreement.

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Cardinal Health, Inc. is a global, integrated healthcare services and products company, providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories and physician offices worldwide. (PRNewsfoto/Cardinal Health)

This settlement reflects an agreement of the plaintiffs to dismiss the cases, which are currently being tried, in exchange for the distributors’ agreement that New York and its participating subdivisions will receive a settlement amount consistent with their allocations under the broad settlement framework, as well as certain attorneys’ fees and costs.

While the companies strongly dispute the allegations at issue in the trial, they believe this resolution will allow the companies to focus their attention and resources on the safe and secure delivery of medications and therapies while delivering meaningful relief to affected communities, and will also support efforts to achieve a broad resolution under the previously disclosed framework.

The distributors remain deeply concerned about the impact the opioid epidemic is having on communities across the nation and remain committed to being part of the solution.