Court Approves $700M Opioid Settlement for Acute Hospitals

Introduction

A federal court has approved a $700 million class-action settlement that will compensate over 1,000 acute care hospitals for costs related to the opioid crisis.

The settlement consolidates four separate agreements involving major drug manufacturers and distributors, including Cencora (formerly AmerisourceBergen), Cardinal Health, McKesson, Johnson & Johnson, Teva, and Allergan.

Allegations Against the Defendants

The lawsuit accused these companies of misrepresenting the risks and safety of prescription opioids, failing to monitor suspicious orders, and dispensing opioids that were not prescribed for legitimate medical purposes. While the defendants deny any wrongdoing, they have agreed to resolve the claims through this settlement.

Breakdown of the Settlement Funds

Under the agreement, $651 million will go toward compensating hospitals for past and future opioid-related treatment costs and community outreach programs aimed at combating the epidemic. An additional $49 million will be allocated to supply Naloxone to hospitals over the next seven years. The settlement class counsel has indicated it will request approximately one-third of the total settlement as attorney fees.

Eligibility and Claims Process

The class-action settlement covers nongovernment acute care hospitals that treated opioid-related conditions between January 1, 2009, and October 30, 2024. Hospitals needed to submit a claim by March 4 to qualify for compensation. Those who applied could either accept a $5,000 “Quick Pay” option or provide detailed documentation to receive a higher payout based on the care they provided.

Future Legal Actions

Court documents list over 1,000 eligible hospitals, though settlement class counsel believes many more have been impacted by the opioid epidemic. Attorneys involved in the case expressed satisfaction that these companies have taken financial responsibility for hospitals that have long battled the crisis. The legal team continues to pursue settlements with additional defendants, including Walgreens, CVS Pharmacy, and Walmart.

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