Teva's stock shines after agreeing to opioid settlements
Three of the four defendants agreeing to pay $260 million to settle opioid litigation with two Ohio counties have seen their stock prices plummet, as the settlement leaves 2,700 more local governments still suing over the distributors' roles in the addiction crisis.
Why it matters: The deal could serve as a template that would put the companies on the hook for $47 billion in damages to all 2,700 counties serving as plaintiffs in the lawsuits, depending on what happens in individual representative "bellwether trials" that will shape negotiations.
Yes, but: While the stock prices of Cardinal Health, McKesson and AmerisourceBergen expectedly fell by around 3% on Monday, Teva's stock jumped, rising as much as 18% during the day and ending 8.7% higher.
What's happening: Teva announced it had agreed to a separate settlement to resolve complaints against the company from a group of attorneys general from states around the country for its role in helping to fuel the opioid crisis.
- Under the deal, Teva would donate $23 billion in opioid addiction treatment drugs and pay $250 million over 10 years.
- Neither settlement includes an admission of liability from Teva.