4 companies on verge of settling US opioid lawsuits

The three biggest U.S. drug distribution companies and the drugmaker Johnson & Johnson are on the verge of a $26 billion settlement covering thousands of lawsuits over the toll of opioids across the U.S., two people with knowledge of the plans told The Associated Press.

As a precursor to the bigger deal, the distribution companies AmerisourceBergen, Cardinal Health and McKesson are expected to announce a deal Tuesday to settle an ongoing trial in New York, one of the people said. That deal alone would generate more than $1 billion to abate the damage done by opioids in the state. The trial is expected to continue, but the settlement leaves only three drug manufacturers as defendants.

The people who gave the AP details of the settlements did so on the condition of anonymity because they were not authorized to speak as details are finalized.

Cardinal Health declined to comment early Tuesday, and the other distribution companies did not respond to requests for comment. But Johnson and Johnson reiterated in a statement that it's prepared to contribute up to $5 billion to the national settlement. The company settled with New York last month just before the trial there started. “There continues to be progress toward finalizing this agreement and we remain committed to providing certainty for involved parties and critical assistance for families and communities in need," the company said. “The settlement is not an admission of liability or wrongdoing, and the Company will continue to defend against any litigation that the final agreement does not resolve.”

The distribution companies face thousands of similar legal claims from state and local governments across the country and have long been trying to settle them all. The New York deal would become a part of a national agreement if one can be struck this year, according...