WVa cities, counties reach $400M settlement with drug firms

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Plaintiffs attorneys Bob Fitzsimmons, left, and Paul Farrell discuss a $400 million settlement reached in a lawsuit with three major U.S. drug distributors, Monday, Aug. 1, 2022, in Charleston, W.Va. (Kenny Kemp/Charleston Gazette-Mail via AP)

CHARLESTON, W.Va. (AP) — West Virginia cities and counties reached a $400 million tentative settlement with three major U.S. drug distributors, lawyers announced Monday.

In a lawsuit in state court, the cities and counties accused the distributors of fueling the opioid epidemic. The companies are AmerisourceBergen, Cardinal Health and McKesson.

The funds will be distributed over 12 years.

“This is a monumental settlement for the state of West Virginia, and it’s been a battle that’s been waged by a lot of families, a lot of communities,” Wheeling attorney Bob Fitzsimmons told news outlets. “A lot of bad things have happened as a result of the opioid epidemic.”

Fitzsimmons and Huntington attorney Paul Farrell Jr. said the individual counties and municipalities still must approve the settlement.

Lauren Esposito, vice president of external and executive communications for AmerisourceBergen, said the settlement will avoid years of litigation and help get resources to areas affected by opioid misuse, as well as make sure health care facilities are able to access medications that patients and providers need, news outlets reported.

Cardinal Health said in an emailed statement, “We remain committed to being a part of the solution to the opioid epidemic and believe this settlement agreement will help provide necessary relief to West Virginia communities in need.”

McKesson did not immediately respond to a message seeking comment Monday.

Last month, a federal judge ruled against Cabell County and Huntington in similar claims. They are not included in the settlement announced Monday and plan to appeal the ruling that rejected most arguments made against the drug companies.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Cardinal Health (CAH)
4.6195 of 5 stars
$102.17-0.8%1.96%40.22Moderate Buy$102.93
McKesson (MCK)
4.7911 of 5 stars
$531.21-1.1%0.47%24.07Moderate Buy$536.71
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