The agency says it will strip Morris & Dickson of its license to sell highly addictive painkillers after finding it failed to flag thousands of suspicious orders at the height of the opioid crisis.
Cherokee Nation officials say their community has been disproportionately harmed by the opioid crisis. The drug companies deny any wrongdoing.
Four big drug companies would pay out $26 billion to dozens of states over the next 17 years.
Drug distributors have faced embarrassing revelations about their internal practices. One email shared by corporate executives described rural Americans addicted to opioids as "pillbillies."