MCK · 10-Q · 2026Q2 · Full report

Opioid Litigation

MCKESSON CORP · 2026-08-05 · Importance 65 · Surprise 60 · Contradicted

McKesson and two other national pharmaceutical distributors entered a $7.9 billion settlement with participating U.S. states, subdivisions, the District of Columbia, and eligible territories, with payments extending through 2038 and approximately 2,300 cases dismissed. The Company also agreed to separate settlements with Alabama through 2031 and West Virginia subdivisions through 2033, while opioid claims by nonparticipating municipalities and other plaintiffs remain pending. At June 30, 2026, McKesson had accrued $5.660 billion for opioid-related governmental, tribal, and certain nongovernmental claims, including $5.058 billion in long-term litigation liabilities. In April 2026, the Supreme Court of Maryland vacated a $[amount] million Baltimore judgment and remanded the case; Baltimore subsequently dismissed its claim with prejudice, reducing McKesson’s opioid accrual by $[amount] million.

Key facts

• The Distributors agreed to a $7.9 billion Settlement to be paid by 2038, with a minimum of % of the payments required to remediate the opioid epidemic (percentage redacted). source
• Funds necessary for future debt maturities and other cash requirements, including any future payments that may be made related to our total estimated litigation liability of $5.7 billion as of June 30, 2026 payable under settlement agreements for opioid-related claims, are expected to be met by existing cash balances, cash flow from operations, existing credit sources, and future borrowings. source
• McKesson's estimated accrued liability for opioid-related claims totaled $5,660 million at June 30, 2026 and $5,692 million at March 31, 2026, with long-term litigation liabilities of $5,058 million and $5,091 million, respectively. source
• The Company and its Canadian affiliate are defendants in four opioid-related cases pending in Canada, with a common-issues trial scheduled to begin on February 22, 2028 in the Supreme Court of British Columbia. source
• The Company entered into separate settlement agreements with Alabama and its subdivisions for approximately $ million through 2031 (amount redacted), and with certain West Virginia subdivisions for approximately $ million through 2033 (amount redacted). source
• There were approximately 2,300 cases dismissed as part of the Settlement with states and participating subdivisions related to opioid litigation. source
• After a trial, claims of Cabell County and the City of Huntington were initially decided in the Company's favor on July 4, 2022; the Fourth Circuit reversed and remanded on October 28, 2025. source
• The trial court entered judgment against McKesson in Mayor and City Council of Baltimore v. Purdue Pharma LP on September 4, 2025 awarding $ million in compensatory damages and $ million in monetary abatement (amounts redacted); the Supreme Court of Maryland vacated and remanded that judgment on April 24, 2026. source

Impact estimates