CLEVELAND (AP) — Efforts to settle thousands of lawsuits related to the nation's opioid epidemic intensified Wednesday ahead of the scheduled start of arguments in the first federal trial over the crisis.
A person with knowledge of the negotiations told The Associated Press that three major drug distributors plus two manufacturers were working on the outlines of a settlement.
It would include $22 billion in cash over time plus up to $15 billion worth of overdose antidotes and treatment drugs, with distribution of those drugs valued at another $14 billion — a calculation of how much a distributor could charge for them.
Under the proposal, the distributors AmerisourceBergen, Cardinal Health and McKesson would pay a total of $18 billion over 18 years. Johnson & Johnson would pay $4 billion over time. Drugmaker Teva would contribute the drugs, but not cash.
The person spoke on the condition of anonymity because the talks were ongoing and said the details of the deal could change.
A $50 billion framework was first reported Wednesday by The New York Times. Samantha Fisher, a spokeswoman for the Tennessee attorney general's office, confirmed to the AP that that report "appears to be correct on the details of the tentative settlement framework."
It's not clear whether states and local governments will accept the deal.
"We await the fine print of the settlement framework so that we can work alongside the 2,600 communities we represent to determine the best path forward," the lead lawyers for local governments said in a statement Wednesday. "Our priority when assessing settlement proposals is to ensure they will provide urgently-needed relief in the near term and that these resources will be directed exclusively toward efforts to abate the opioid epidemic."
The lawyers said the aim is "to secure funds that will aid law enforcement officers, medical professionals, and treatment facility staff around the country for the decades-long recovery process ahead."
Drug companies and other state attorneys general who are leading the talks either did not return messages or comment.
The talks are picking up as a jury is being selected in Cleveland for a trial on claims against some companies in the drug industry being brought by the Ohio counties of Cuyahoga and Summit. They claim the companies engaged in a conspiracy that has damaged their communities should be held accountable.
Jury selection began Wednesday and could wrap up Thursday, with opening arguments scheduled Monday.
Johnson & Johnson has already settled with the two counties. If the other companies settle, too, it would leave only the pharmacy chain Walgreens — in its role as a distributor to its own stores — and the smaller distributor Henry Schein as defendants. It's not clear whether the trial would go on in that case.