Kroger Co., one of the largest grocery chains in the nation, has reached a settlement in lawsuits related to the U.S. opioid crisis. The company has agreed to pay up to $1.4 billion over 11 years. This includes $1.2 billion for state and local governments, $36 million for Native American tribes, and approximately $177 million for lawyers’ fees and costs.
Kroger currently operates stores in 35 states, with the exception of the Northeast, northern plains, and Hawaii. Thirty-three states would be eligible for funds from this settlement. The company has previously settled with New Mexico and West Virginia.
Over the past eight years, various entities involved in the prescription drug industry, including manufacturers, wholesalers, consultants, and pharmacies, have proposed or finalized settlements worth over $50 billion to address the opioid crisis. These settlements include at least 12 others exceeding $1 billion. The U.S. Supreme Court is scheduled to hear arguments later this year regarding the legality of one of the largest settlements involving OxyContin maker Purdue Pharma.
The majority of the settlement funds will be used to combat the overdose epidemic, which has resulted in over 80,000 deaths annually in recent years. Most of these deaths are attributed to illicit synthetic drugs such as fentanyl, rather than prescription painkillers.
According to Jayne Conroy, a lead lawyer representing the suing governments, it is fitting for key players in the prescription drug industry to contribute significantly to finding solutions for the crisis. She emphasized that addiction stems from the excessive use of prescription drugs.
As part of the settlement, the companies involved have agreed to implement changes to their business practices regarding powerful prescription painkillers. This includes restrictions on marketing and the use of data to prevent overprescribing. The specifics of these terms for Kroger are yet to be finalized, but they are expected to resemble those of previous agreements reached by other companies.
Kroger intends to finalize the settlement in time to make initial payments in December. The company, however, does not admit any wrongdoing or liability in connection to the crisis. The settlement is considered a significant step towards resolving opioid lawsuits and Kroger reiterates its commitment to patient safety and combating opioid abuse.
While many of the major players have settled, the opioid litigation is ongoing. Cases involving supermarket chains Publix and Albertsons, the latter of which is attempting to merge with Kroger, are being prepared for trial. Pharmacy benefit managers, including Express Scripts and OptumRx, also face opioid claims from governments.
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