Sept. 8 (UPI) — Kroger, a leading grocery chain, announced on Friday its agreement to pay more than $1.2 billion over the next decade to settle lawsuits alleging its involvement in the U.S. opioid epidemic.
This settlement represents another case in a series of legal actions targeting prominent drugstores for their contribution to the nationwide crisis, which originated about three decades ago due to the pharmaceutical industry’s proliferation of painkillers.
The payout will be shared among states, subdivisions, and Native American tribes in areas where Kroger operates, as stated in a company press release on Friday.
Kroger will make equal installments of the settlement amount over the next 11 years, with the initial payment scheduled for December.
Moreover, the company will allocate an additional $36 million towards the establishment of outreach and drug treatment programs, as well as the implementation of new policies and public awareness campaigns in affected communities. Additionally, Kroger will set aside $177 million to cover attorney fees, which will be paid in equal installments over a six-year period.
It is essential to note that the company has not admitted to any wrongdoing and will not face additional claims or liabilities related to the opioid crisis.
Participation in the settlement is optional for plaintiffs, and Kroger retains the authority to determine if there is sufficient involvement for the settlement to take effect, according to the company’s statement. If all conditions are satisfied, the settlement will fully resolve all claims on behalf of participating states, subdivisions, and tribes.
The specific terms of the settlement remain confidential as the finalization of non-monetary conditions is still being negotiated.
Several other major prescription drug retailers have recently settled opioid-related lawsuits.
In May, Walgreens agreed to pay nearly $230 million to San Francisco for its role in the city’s opioid crisis, making it the largest award to a local jurisdiction since the crisis began.
Last December, CVS and Walgreens agreed to pay over $10 billion to settle lawsuits in New York, California, Massachusetts, Pennsylvania, Oregon, and North Carolina.
In the previous month, Walmart agreed to pay $3.1 billion to resolve multiple lawsuits alleging reckless distribution of opiate medication.
In February 2022, AmerisourceBergen, Johnson & Johnson, McKesson, and Cardinal Health signed a $26 billion settlement agreement.
Kroger considers this settlement a significant milestone in resolving ongoing opioid litigation and supporting efforts to address the crisis.
As a result of the settlement, Kroger will be able to write off a significant portion of the payment, limiting its losses to approximately $870 million.
The company is expected to report a loss of $1.4 billion during the second quarter of 2023, affecting its shareholders’ financial position for the year.
Headquartered in Cincinnati, Kroger has become the third-largest retail supermarket chain in the United States, following Walmart and Costco. The company serves approximately 11 million customers daily and offers private label brands and in-store pharmacy services.
