Walgreens, CVS Health to pay $10 billion to end nationwide opioid suits
The country’s two largest drug store retailers have struck tentative deals totaling about $10 billion to settle the many lawsuits brought by states, local governments, and tribes over the companies’ alleged mishandling of prescriptions for opioid painkillers.
Both CVS Health and Walgreens Boots Alliance have agreed “in principle” to financial amounts and payment terms as part of settlement frameworks to substantially resolve opioid-related litigation. The agreements include no admission of any liability or wrongdoing by the two companies. States and local governments must agree for the deal to be finalized.
More than 3,000 lawsuits have been filed by U.S. states, cities, and counties against opioid manufacturers, distributors and pharmacies, accusing them of downplaying the addiction risk and failing to stop pills from being diverted for illegal use, reported CNN.
In August, a federal judge ruled that CVS, Walgreens and Walmart must pay a combined $650.6 million to two Ohio counties for damages related to the opioid crisis. The lawsuit was initially filed in 2018 as part of federal multi-district litigation created that year to address the manifold claims against opioid manufacturers and distributors.
CVS
In a release, CVS said, if the settlement is reached, it would pay nearly $5 billion ($4.9 billion to states and political subdivisions and approximately $130 million to tribes) over 10 years, beginning in 2023.
"We are pleased to resolve these longstanding claims and putting them behind us is in the best interest of all parties, as well as our customers, colleagues and shareholders," said Thomas Moriarty, chief policy officer and general counsel, CVS Health. "We are committed to working with states, municipalities and tribes, and will continue our own important initiatives to help reduce the illegitimate use of prescription opioids."
Walgreens
In its release, Walgreens said, if the settlement is reached, it would pay approximately $4.95 billion in remediation payments to be paid out over 15 years.
“As one of the largest pharmacy chains in the nation, we remain committed to being a part of the solution, and this settlement framework will allow us to keep our focus on the health and wellbeing of our customers and patients, while making positive contributions to address the opioid crisis,” the company said. “We believe this is in the best interest of the company and our stakeholders at this time, and allows our pharmacists, dedicated healthcare professionals who live and work in the communities they serve, to continue playing a critical role in providing education and resources to help combat opioid misuse and abuse.”
In their statements, CVS and Walgreens detailed the action they have taken to respond to — and fight— the opioid crisis.