Kroger settles for $1.2B in nationwide opioid case.
Kroger, the American supermarket and pharmacy chain, has agreed to pay more than $1 billion to settle the majority of claims in a multi-party lawsuit.
The company announced on Sept. 8 that $1.2 billion would be paid out to states and local governments, with another $36 million to Native American communities, to fund for opioid treatment efforts.
Several states, local governments, and tribes accused the company of facilitating the U.S. opioid epidemic.
Thousands of lawsuits have been filed against drug distributors, pharmacies, and wholesalers over the years for their contribution to the opioid crisis.
More than 564,000 people have died from overdoses involving opioids through prescription and illicit sources between 1999 and 2020, according to the latest data from the Centers for Disease Control.
Kroger Hopes to Settle Numerous Opioid-Related Lawsuits
Thirty-three states, the District of Columbia, along with Indian tribes and municipalities, will each have an opportunity to opt-in to participate in the settlement.
The settlement would allow for “full resolution” of all claims on behalf of all parties if all conditions are satisfied, announced the retailer in a press statement.
The payments will be made out in even installments over the next 11 years, beginning in December.
However, in a statement, Kroger said that the settlement was not an admission of wrongdoing or liability.
“Kroger will continue to vigorously defend against any other claims and lawsuits relating to opioids that the final agreement does not resolve,” the company said in the release.
Meanwhile, the supermarket chain also released its second-quarter earnings report the same day.
Kroger expects to take a $1.4 billion net loss for the second quarter due to the settlements and associated legal fees, “which will negatively impact earnings.”
Other Retailers Face Similar Claims
Most opioid deaths were caused by prescription drugs, but government authorities, doctors, and retailers have since taken steps to make them harder to obtain.
Unfortunately, some of those who are severely addicted have switched to stronger opioid-based substances, which are more deadly.
Kroger is the latest major retailer to announce a nationwide settlement agreement over opioids, after Walgreens, CVS,, and Walmart came a similar arrangement last fall.
Walmart has paid out $3.1 billion to settle claims, while CVS and Walgreens agreed to pay about $5 billion and $4.95 billion, respectively.
The company is reportedly on the verge of filing for bankruptcy later this fall to help restructure its debt and halt ongoing opioid lawsuits, according to Reuters.
Lawyers for the plaintiffs called Kroger’s decision an important step toward holding accountable the companies which played a role in the opioid epidemic.
The settlement agreement “is the first involving one of the smaller, regional supermarkets.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
*As an Amazon Associate I earn from qualifying purchases
Now loading...