Kroger announced on Friday that it has reached a settlement of $1.2 billion with U.S. states, local governments, and Native American tribes to resolve most of the claims accusing the company of contributing to the opioid epidemic through inadequate oversight of its pill sales.
The agreement, which was disclosed ahead of Kroger’s fiscal second-quarter earnings report, will result in the “full resolution” of these claims. Kroger joins other retail pharmacy chains such as Walgreens, CVS, and Walmart in settling opioid-related claims.
However, Kroger emphasizes that this settlement does not imply any admission of wrongdoing or liability. The company intends to vigorously defend itself against any remaining claims and lawsuits related to opioids.
In early trading on Friday, Kroger’s shares rose by 4%. The settlement involves a payment of $1.2 billion to U.S. states and local governments over 11 years, as well as $36 million to Native American tribes. Kroger recorded a net loss for the second quarter due to a $1.4 billion charge associated with the settlements and legal fees.
In recent years, numerous lawsuits have been filed against drug companies and wholesalers by state and local governments, accusing them of contributing to the opioid epidemic. This epidemic has claimed the lives of more than 564,000 people from 1999 to 2020, making it a significant public health crisis.
The settlement agreements reached by Kroger and other companies highlight the efforts to address the consequences of the opioid epidemic and compensate affected parties. These agreements also aim to prevent further harm and promote responsible practices in the pharmaceutical industry.
Several companies have announced nationwide settlements relating to the opioid crisis in the past year.
In November, Walgreens agreed to pay a total of $4.95 billion to U.S. states, local governments, and tribes to settle all opioid-related claims. Additionally, the company settled with West Virginia for $83 million, as the state had the highest number of opioid-related overdose deaths nationwide.
In the same month, CVS reached a settlement of $5 billion with states, local governments, and tribes to resolve all opioid-related lawsuits. The company also settled with West Virginia for $82.5 million.
In December, Walmart
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