Sept. 8 (UPI) — Kroger on Friday agreed to pay more than $1.2 billion over the next decade to settle a number of lawsuits claiming the grocery chain helped fuel the U.S. opioid epidemic.
The settlement was the latest in a recent drumbeat of lawsuits filed against various big brand drugstores for their role in sustaining the national crisis, which first emerged about 30 years ago as the pharmaceutical industry flooded the market with painkillers.
The payout will be split among states, subdivisions and Native American tribes in regions where the store operates, according to a company statement issued the media Friday.
The money will be paid in equal installments over the next 11 years, with Kroger forking over the first payment in December.
The company has agreed to pay an additional $36 million to create outreach and drug treatment programs, as well as new policy and public awareness campaigns in affected communities. The company will also shell out an extra $177 million to cover attorneys’ fees that will be paid in equal installments over six years.
As part of the settlement, Kroger was not required to admit to any wrongdoing and would not be subject to any additional claims or liability related to the opioid crisis.
The plaintiffs are required to opt-in to get a share of the money, with Kroger having “full discretion to determine whether there is sufficient participation for the settlement to become effective,” the company said the statement. “If all conditions are satisfied, the settlement would allow for the full resolution of all claims on behalf of participating states, subdivisions and tribes.”
Details of the settlement were not disclosed as Kroger also had to meet a number of non-monetary conditions that were still being negotiated.
Several other big-brand stores that double as major prescription drug retailers have settled opioid lawsuits in recent months.
In May, Walgreens agreed to pay San Francisco nearly $230 million for its role in the city’s opioid crisis, making it the largest award to a local jurisdiction since the start of the epidemic.
Last December, CVS and Walgreens agreed to pay more than $10 billion as part of a deal to settle lawsuits in New York, California, Massachusetts, Pennsylvania, Oregon and North Carolina.
The month before, Walmart agreed to to pay $3.1 billion to resolve a number of lawsuits alleging the retailer was reckless in its distribution of opiate medication.
In February 2022, AmerisourceBergen, Johnson & Johnson, McKesson and Cardinal Health agreed to pay $26 billion to settle litigation against them.
On Friday, Kroger described its settlement as “an important milestone in the company’s efforts to resolve the pending opioid litigation and support abatement efforts.”
Kroger will get a tax write-off on a large portion of the settlement payment, limiting its total losses to about $870 million.
Kroger plans to report a $1.4 billion loss during the second quarter of 2023, which would hurt the bottom line for shareholders this year.
Based in Cincinnati, Kroger has grown through the years to become the third-largest retail supermarket chain in the United States behind Walmart and Costco. The store touts 11 million customers per day, its own private label brands, and in-store pharmacy services.
