Kroger Reaches Settlement of Up to $1.4 Billion for Opioid Lawsuits

Kroger, one of the nation’s largest grocery chains, has agreed to settle lawsuits pertaining to the U.S. opioid crisis. The company will pay up to $1.4 billion over a span of 11 years. This settlement includes up to $1.2 billion for state and local governments, $36 million to Native American tribes, and approximately $177 million to cover lawyers’ fees and costs.

Kroger currently operates stores in 35 states, with the exception of the Northeast, the northern plains, and Hawaii. Thirty-three states will be eligible for funds from this settlement. The company had previously reached settlements with New Mexico and West Virginia.

Over the past eight years, various players in the prescription drug industry, including manufacturers, wholesalers, consultants, and pharmacies, have proposed or finalized opioid settlements, totaling more than $50 billion. Many of these settlements exceed $1 billion. The U.S. Supreme Court will soon hear arguments on the legality of one of the largest settlements involving OxyContin maker, Purdue Pharma.

The majority of the settlement money will be used to address the overdose epidemic that has resulted in more than 80,000 deaths each year in the U.S. In recent years, illicit synthetic drugs like fentanyl have been the primary cause of deaths, rather than prescription painkillers.

Jayne Conroy, a lead lawyer for the governments involved in the lawsuits, stated that it is logical for players in the prescription drug industry to bear the responsibility of funding solutions to the crisis, as the addiction problem stems from the widespread use of prescription drugs.

As part of the settlement, the companies have also agreed to change their business practices related to powerful prescription painkillers. This includes restrictions on marketing and the utilization of data to identify cases of overprescribing. The specific terms for Kroger have not been finalized yet, but they are expected to resemble those of other companies.

Kroger intends to finalize the deal in order to make initial payments in December. The company, however, does not admit any wrongdoing or liability as part of this settlement. Kroger has been heavily focused on combatting opioid abuse and remains committed to patient safety.

While many major players have settled, the opioid litigation is ongoing. Cases involving supermarket chains like Publix and Albertsons, as well as pharmacy benefit managers like Express Scripts and OptumRx, are being prepared for trial.