Kroger Resolves National Opioid Lawsuits, Commits Up to $1.2 Billion Settlement

Kroger, the popular supermarket chain, has recently reached a potential agreement in principle worth $1.2 billion to settle the majority of claims made by states, local governments, and Native American tribes. These entities accused Kroger of contributing to the opioid epidemic.

In a statement released on Friday, Kroger announced its commitment to pay up to $1.2 billion to states and local governments, as well as $36 million to Native American tribes, in order to fund opioid abatement efforts. The payments will be made over 11 years in equal installments, starting in December.

All eligible parties, including 33 states, the District of Columbia, tribes, and municipalities, will have the opportunity to opt-in and participate in the settlement. If all conditions are met, this settlement will provide a resolution for all claims.

Kroger emphasized that the potential settlement is not an admission of wrongdoing or liability. The company also stated that it will vigorously defend against any other claims and lawsuits related to opioids that are not covered by the final agreement.

With thousands of lawsuits filed against drug distributors, pharmacies, and wholesalers for their contribution to the opioid crisis, this settlement marks a significant step forward in holding companies accountable.

Last fall, Walmart agreed to pay $3.1 billion to settle claims, while CVS and Walgreens also reached settlements of about $5 billion each.

The lawyers representing the plaintiffs commend this settlement as an important development in holding each company responsible for their role in the opioid epidemic. They note that Kroger’s participation in the settlement is particularly significant as it is the first involving a smaller regional supermarket pharmacy. They also express their commitment to aggressively pursue remaining cases against regional pharmacy defendants.

The lawyers encourage all eligible states and municipalities to join the agreement and expedite the process of providing life-saving resources where they are needed the most.

Kroger anticipates taking a $1.4 billion charge during the second quarter of 2023, which includes the settlements and associated legal fees. This charge will have a negative impact on the company’s earnings.

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