Rhode Island, in reversal, to settle opioid claims against U.S. drug distributors

By Nate Raymond

Jan 25 (Reuters) - Rhode Island on Tuesday reversed course and threw its support behind a $21 billion nationwide settlement it originally declined to back resolving lawsuits alleging that three large drug distributors fueled the deadly U.S. opioid epidemic.

Rhode Island Attorney General Peter Neronha's announcement marked the latest instance of a holdout state opting into the settlement with the big three drug distributors McKesson Corp , AmerisourceBergen Corp and Cardinal Health Inc .

Cities and counties in states that have agreed to settle face a Wednesday deadline to join the distributors' settlement and a related $5 billion agreement https://www.reuters.com/legal/litigation/drug-distributors-jj-reach-landmark-26-bln-opioid-settlement-2021-07-21 with the drugmaker Johnson & Johnson.

How much the companies ultimately must pay and how much outstanding litigation they will face depends on state and local government participation. The deadline was recently extended as more states opted to settle.

Rhode Island will receive at least $90.8 million over 18 years from the distributors under an agreement the state said ensures it receives money regardless of whether the global settlement proceeds.

AmerisourceBergen said it was "pleased to see the increased commitment to participation in the global settlement process." Cardinal Health had no comment. McKesson did not respond to requests for comment.

More than 3,300 lawsuits, largely by state and local governments, are pending seeking to hold those and other companies responsible for an opioid abuse crisis that led to hundreds of thousands of overdose deaths in the United States. The companies deny wrongdoing.

Rhode Island had previously agreed to settle with J&J but not the distributors.

The number of states that have not agreed to settle with some or all of the four companies has dwindled https://www.reuters.com/business/healthcare-pharmaceuticals/jj-reaches-opioid-settlement-with-holdout-state-new-mexico-2022-01-14 from nine in September to five, including Washington, which has taken the distributors to trial https://www.reuters.com/world/us/mckesson-drug-distributors-face-95-billion-opioid-trial-washington-state-2021-11-15.

New Hampshire settled with the distributors but not J&J. A trial in that case set for next week was delayed on Monday to September due to the COVID-19 pandemic. (Reporting by Nate Raymond in Boston; Editing by Bill Berkrot)