Kroger Settles Claims in Opioid Epidemic Lawsuit

Kroger, the popular retail company, announced on Friday that it has agreed to pay $1.2 billion to U.S. states, subdivisions, and Native American tribes to settle the majority of claims that it fueled the opioid epidemic through lax oversight of its pill sales.

Kroger stated that this settlement allows for the “full resolution” of all claims on behalf of those parties. However, the company clarified that the settlement does not imply any admission of wrongdoing or liability.

The company also emphasized that it will continue to vigorously defend against any other claims and lawsuits relating to opioids that the final agreement does not resolve.

As news of the settlement broke, shares of Kroger fell more than 1% in premarket trading on Friday.

Key Details about the Settlement

Under the settlement, Kroger will pay $1.2 billion to U.S. states and subdivisions and $36 million to Native American tribes over a period of 11 years. The company anticipates incurring a $1.4 billion charge related to the settlements and associated legal fees during the second quarter.

Ongoing Lawsuits in the Drug Industry

State and local governments have been filing numerous lawsuits against drug companies and wholesalers, holding them responsible for contributing to the oversupply of prescription drugs that fueled the deadly opioid epidemic. These lawsuits have resulted in a series of settlement deals.

According to the latest data from the Centers for Disease Control and Prevention, over 564,000 people have died from overdoses involving any opioid, including prescription and illicit opioids, from 1999 to 2020.

Other notable settlements in the opioid epidemic lawsuits include:

• Walgreens settled with West Virginia for $83 million in January.
• Walmart settled with West Virginia for $65 million last fall.
• CVS settled with West Virginia for $82.5 million last fall.
• Rite Aid settled with West Virginia for up to $30 million in August.

Please note that this is breaking news, and updates may follow.