Kroger Agrees to $1.2 Billion Settlement in Opioid Epidemic Lawsuit
Kroger
on Friday announced that it will pay $1.2 billion to settle the majority of claims that it played a role in the opioid epidemic through inadequate oversight of its pill sales.
According to Kroger, this settlement will result in the “full resolution” of all claims made by U.S. states, subdivisions, and Native American tribes. However, the company clarified that the settlement does not imply an admission of wrongdoing or liability.
In a press release, Kroger stated, “Kroger will continue to vigorously defend against any other claims and lawsuits relating to opioids that the final agreement does not resolve.”
Shares of Kroger experienced a decline of over 1% in premarket trading on Friday.
As part of the settlement, Kroger will make payments of $1.2 billion to U.S. states and subdivisions, as well as $36 million to Native American tribes over a span of 11 years. The company anticipates a charge of $1.4 billion in relation to the settlements and associated legal fees during the second quarter.
State and local governments have filed numerous lawsuits against pharmaceutical companies and wholesalers, accusing them of contributing to the overabundance of prescription drugs that fueled the opioid epidemic. Consequently, there have been various settlement agreements reached.
According to the latest data from the Centers for Disease Control and Prevention, more than 564,000 individuals died from overdoses involving any form of opioid, including prescription and illicit opioids, between 1999 and 2020.
Walgreens
settled with West Virginia for $83 million in January, while
Walmart
and
CVS
settled with the state last fall, with Walmart settling for $65 million and CVS for $82.5 million.
Rite Aid settled with West Virginia for up to $30 million in August of last year.
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