Drug Distributors Ink First Opioid Settlement With Cherokee Nation

  • Cardinal Health Inc CAHMcKesson Corporation MCK, and AmerisourceBergen Corp ABC, accused of U.S. addiction crisis, have struck a settlement with a tribal government, Reuters reports.
  • As part of the deal with Cherokee Nation's territory in Oklahoma, the three companies will pay $75 million over six and half years to resolve claims linked to the opioid epidemic in the region.
  • The deal came after the drug distributors and Johnson & Johnson JNJ agreed to pay up to $26 billion to resolve similar claims by states and local governments.
  • Related Link: Opioid Settlement Of $26B Between Drug Companies And States.
  • Issuing a statement, Cherokee Nation Principal Chief Chuck Hoskin said that the deal will "enable us to increase our investments in mental health treatment facilities and other programs to help our people recover."
  • Related Link: Drug Distributors To Pay Up To $1.1B To Settle New York Opioid Claims.
  • In 2017, Cherokee Nation was the first Native American tribe to sue drug distributors and pharmacy operators.
  • The Cherokee Nation also sued pharmacy operators CVS Health Corp CVSWalgreens Boots Alliance Inc WBA, and Walmart Inc WMT 
  • The case remains pending against them, and a trial is expected in mid-2022.
  • Price Action: CAH stock is down 0.39% at $51.31, MCK stock is down 0.50% at $203.45, and ABC shares are down 0.60% at $121.90 during the market session on the last check Tuesday.
Posted In: GovernmentNewsHealth CareLegalGeneralBriefsHealth CareHealth Care DistributorsOpioids