U.S. supermarket and pharmacy chain Kroger has agreed to pay more than $1 billion to settle a majority of the claims in a multiparty lawsuit stemming from the U.S. opioid epidemic.
The company said on Sept. 8 that $1.2 billion would be paid out to states and local governments, with another $36 million to Native American communities, to fund opioid addiction treatment efforts. Another $177 million will go to cover attorney costs and related legal fees.
The Cincinnati-based chain was accused of inadequately monitoring opioid prescriptions in its pharmacies.
Several states, local governments, and tribes accused the company of facilitating the opioid epidemic. Thousands of lawsuits have been filed against drug distributors, pharmacies, and wholesalers over the years for their contribution to the crisis.
Kroger didn’t admit to wrongdoing in agreeing to the deal.
More than 564,000 people have died from overdoses involving opioids through prescription and illicit sources between 1999 and 2020, according to the latest data from the Centers for Disease Control and Prevention. Over 75 percent of the nearly 107,000 U.S. drug overdose deaths in 2021 involved an opioid.
Thirty-three states and the District of Columbia, along with Indian tribes and municipalities, will each have an opportunity to participate in the settlement.
The settlement would allow for “full resolution” of all claims on behalf of all parties, if all conditions are satisfied, the retailer said in a statement. The payments would be made in installments over 11 years, beginning in December.
“Kroger will continue to vigorously defend against any other claims and lawsuits relating to opioids that the final agreement does not resolve,” the company said in the statement.
Meanwhile, the supermarket chain also released its second-quarter earnings report the same day.
Other Retailers Face Similar Claims
Kroger is the latest major retailer to announce a nationwide settlement agreement over opioids, following the lead of Walgreens, CVS, and Walmart last fall.Walmart has paid out $3.1 billion to settle claims, while CVS and Walgreens agreed to pay about $5 billion and $4.95 billion, respectively.
The company is reportedly on the verge of filing for bankruptcy this fall to help restructure its debt and halt ongoing opioid lawsuits, according to Reuters.
Lawyers for the plaintiffs called Kroger’s decision an important step toward holding accountable the companies that played a role in the opioid epidemic.
The settlement agreement “is the first involving one of the smaller, regional supermarket pharmacies that still played a significant part in the opioid crisis,” the attorneys stated. “With many cases against regional pharmacy defendants still pending, we will continue to aggressively litigate these remaining cases.”
They further encouraged all eligible states and municipalities to join the agreement “to expedite the process of providing these life-saving resources where they are needed most.”
Kroger didn’t respond to a request for comment by press time.
