Benzinga | Jul 20, 2021 06:32AM EDT

Opioid Settlement Of $26B Between Drug Companies, States To Potentially Conclude This Week

U.S. states attorneys general are expected to conclude the $26B settlement with three drug distributors and Johnson & Johnson (NYSE: JNJ) this week over several opioid-crisis lawsuits against them.

What Happened: Drug distributors McKesson Corporation (NYSE:MCK), AmerisourceBergen Corp (NYSE:ABC), and Cardinal Health Inc (NYSE:CAH), and JNJ have been negotiating the settlement for more than two years to resolve lawsuits, blaming them for fuelling the opioid epidemic in the U.S.

According to the reports, drug distributors are expected to pay $21 billion under the settlement, while J&J will pay $5B.

More than 40 states are expected to support the nationwide settlement, two sources said.

Why It Matters: Under terms of the deal, states that weren't part of the negotiations will have 30 days to decide whether to join the settlement.

Meanwhile, New York is expected to announce that the distributors have agreed to a $1 billion-plus settlement with the state.

In June, Johnson & Johnson said it would end the manufacture and sale of opioids nationwide in a $230 million settlement with the New York state.

Price Action: JNJ, MCK, and ABC shares closed at 166.88, $188.42, and $112.60, respectively, on Monday, while CAH shares are +4.4% at $58.5 in the premarket session on the last check Tuesday.

Photo by Arek Socha from Pixabay